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SC extends 2G auction deadline till January 11, 2013

CNN-IBN
Aug 27, 2012 at 06:36pm IST

New Delhi: The Supreme Court has extended the deadline for a fresh auction of the 2G spectrum licences till January 11, 2013. The court has said that if the orders are not complied with, the court will issue contempt proceedings against the officers responsible.

"Exemplary costs may be imposed in the event of failure to complete auction process within the deadline," the apex court said.

The court has ruled that the existing licence owners can continue to operate till January 18, 2013.

SC extends 2G auction deadline till Jan 11, 2013

The court ruled if the orders are not complied with, the court will issue contempt proceedings against the officers responsible.

The Department of Telecom also issued an 'information memorandum' containing details of spectrum auction which will start from November 12, 2012.

According to the information memorandum issued by the DoT, notices to invite application will be issued on September 28 for two different airwaves band used for mobile telephony and companies interested in auction will have to submit their applications by October 19.

DoT will first auction airwaves used for wireless telecom services in 1,800 Mhz band that are at present used for 2G GSM mobile telephone services.

The department will start auction process of 800 Mhz band spectrum, currently used for CDMA-based mobile services, two days after completion of bidding for 1,800 Mhz band.

DoT will auction minimum of eight blocks each of 1.25 MHz (10 MHz) in all 22 telecom circles. It will add 3 blocks more to meet the requirement of new entrants, wherever available, in case need for such top-up arises.

A new entrant will have to win minimum of four blocks of spectrum in a service area to start business in India.

Government has fixed base price of Rs13,999.96 crore for 5 Mhz of pan-India spectrum in 1,800 Mhz band and Rs13,649.97 crore for 3.75 Mhz of 800 Mhz spectrum.

The memorandum states that new companies interested for buying airwaves in 1,800 Mhz band can buy up to 5 blocks of airwaves with each block having 1.25 Mhz spectrum. However, there is a cap of 3 blocks for bidders in 800 Mhz band.

Existing players for 1,800 Mhz band will be allowed to bod for maximum of two blocks of spectrum. However, in case of 800 Mhz band, existing players will be allowed to bid for only one block of spectrum.

(With additional information from PTI)

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