New Delhi: Telecom regulator Trai on Monday set Rs 3,622.18 crore as base or minimum price for pan-India spectrum in the auction of radio waves which is to be held following the Supreme Court cancelling 122 licenses.

The minimum or base price set is around 10 times higher than the floor price at which the former Telecom Minister A Raja had allocated spectrum and telecom licenses to companies like Unitech Wireless and Swan in 2008.

Trai has recommended a reserve price for 800 Mhz (used for CDMA service) and 900 MHz bands (used for GSM service) at least two times higher than that of minimum price for 1800 MHz band.

The Telecom Regulatory Authority of India (TRAI) has also recommended that the auction exclude companies which already hold airwaves in excess of the prescribed limit.

"Every auction shall be open to all those holding CMTS licence, UAS licence, Unified licence or eligible for grant of Unified Licence. Auction shall not be open to those that hold spectrum above the prescribed cap," Trai said in its recommendation on auction of spectrum.


Following are the highlights of the spectrum auction recommendations issued by Telecom
Regulatory Authority of India (TRAI):

* TRAI recommends Rs 3,622.18 crore per Mhz for 1800 Mhz band

* Reserve price for 1800 MHz in Delhi to be Rs 717.26 crore, Mumbai at Rs 702.14 crore

* TRAI recommends Rs 14,488.72 crore per Mhz for 700 Mhz band

* TRAI recommends Rs 7244.36 crore per Mhz for 800 and 900 Mhz band each

* TRAI recommends spectrum reframing in 800 MHz, 900 MHz bands

* 2X2.4 MHz excess spectrum to be taken back from MTNL

* Auction of spectrum in 700 MHz band may be carried out preferably in 2014.

* Spectrum auction to take place using simultaneous multiple round auction (SMRA) format

* 5 MHz spectrum to be offered in all auctions

* Spectrum shall be offered in blocks of 1.25 MHz each

* Final bid price to be base price for subsequent auctions

* Spectrum acquisition limit to be 50% in each band

* 33 per cent of bid amount as initial payment for 1800 MHz

* 25 per cent of bid amount as initial payment for 700 MHz, 800 Mhz and 900 MHz

* Moratorium of two years with balance payment in 10 years

* Licencees acquiring spectrum through auction in future would have to pay spectrum usage charge at one per cent of adjusted gross revenue (AGR)

* 2G spectrum auction validity period should be 20 years.