The Telecom Regulatory Authority of India (TRAI) has recommended auction of 700 MHz spectrum for the first time in the country, at a reserve price of around Rs 11,500 crore pan India.
700 Mhz is considered very good for offering broadband services. However, top telecom players – Bharti Airtel, Idea Cellular and Mukesh Ambani’s Reliance Jio — have opposed the auction of the new band 700 MHz till a device ecosystem is in place. As per available information, the cost of 
delivering mobile services in 700 Mhz band is approximately 70 per cent cheaper than 2100 Mhz band.
While, for 1,800 Mhz and 2,500 Mhz, the reserve price has been fixed at Rs 2,873 crore and Rs 809 crore. Even, 2,500 Mhz would be auctioned for the first time.
TRAI on Wednesday came out with its recommendations on valuation and reserve price of spectrum in 700 Mhz, 800 Mhz, 900Mhz, 1,800Mhz, 2,100 Mhz, 2,300Mhz and 2,500 Mhz bands.
TRAI also asked the government to put up all available 700 Mhz spectrum up for auction, carry out carrier reassignment exercises in the 800 Mhz band and ensure entire spectrum available with DOT for commercial use should be put for up auction.
Besides, the regulator said the department of telecom and defence must complete harmonisation process in the 1,800 Mhz band before the next round of auction.
The audit for all allocated spectrumboth commercial as well as spectrum allocated to the government organisations and PSU should be done by an independent agency.
The recommendations will now be considered by the Telecom Commission, the highest policy making body of the department of telecommunications and then will go for a final approval of the Cabinet. However, it is unlikely that the spectrum auction will happen in the current fiscal as envisaged by the government earlier.
