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Cabinet authorizes telecom spectrum auction in several bands at a starting bid of Rs 96,317.65 cr

Spectrum in the following frequency bands will be up for auction: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.

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Ayushi Singh
New Update
Its time for Telecom to go green

Union Cabinet, gave its approval to the Department of Telecommunications' request to hold a spectrum auction.

On Thursday, the Union Cabinet, led by Prime Minister Narendra Modi, gave its approval to the Department of Telecommunications' request to hold a spectrum auction. The winning bidders would receive spectrum, which they can use to provide telecom services. According to a statement from the government, more spectrum would enhance the coverage and quality of telecom services for customers.

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Spectrum in the following frequency bands will be up for auction: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz. Spectrum will be made available for allocation with a 20-year validity period. 10,523.15 MHz in total, valued at Rs 96,317.65 crore (reserve price), are up for grabs.

In order to enhance the amount of spectrum available to fulfill the demands of telecommunication services in the future, the Cabinet has also established a Committee of Secretaries (CoS) to examine the re-farming of current spectrum usages.

A proposal for spectrum requirements in the 700 MHz band for Automatic Train Protection (ATP) systems and operations for rail-based urban/regional transport networks such as NCRTC was also accepted by the Cabinet.

According to the Center, India is renowned for being a leader in digital technologies nowadays. Its 5G rollout has been acknowledged as the fastest in the world.  Mobile communication serves as the entry point to a prosperous and just Digital India.  Bharat is also committed to leading the way in 6G services, which will develop over the next five years.

Shashank Mishra – Partner, Shardul Amarchand Mangaldas & Co. said, "The Government’s efforts to conduct these auctions is in line with TRAI’s view that existing spectrum bands can be auctioned without waiting for a fresh recommendation on prices. It also indicates that spectrum auction may be held more regularly moving forward. We are at an interesting juncture where the Telecommunications Act, which also deals with spectrum auctions and refarming, is notified but not brought into force. Regardless, the timing of this decision shows the Government’s intent, especially with respect to pushing reform in the sector by constituting a committee to consider re-farming of existing spectrum." 
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