Telecom Commission favours auction of all spectrum available at base price

Inter-ministerial panel Telecom Commission on Saturday favoured auctioning of all spectrum available at base price suggested by regulator Trai, which could fetch the exchequer around Rs 5.36 lakh crore.

The panel has also favoured that companies winning spectrum in higher frequency bands -- above 1Ghz like 1800 Mhz, 2100 Mhz, 2300 Mhz -- should make 50% upfront payment and rest in 10 years after a 2-year moratorium.

Earlier, companies were given option to make 33% upfront payment.

For spectrum below 1Ghz band such as 700 Mhz, 800 Mhz, 900 Mhz, companies will require to pay 25% and rest in 10 years after a 2-year moratorium. There has been no change in earlier practice of government.

The suggestion of Telecom Commission will be placed before the Cabinet for final approval based on which rules for auction to be held in July will be framed.

The panel deferred the decision on annual spectrum charges.