Spectrum auction: Defence to give up airwaves

According to sources, DoT and Defence Ministry have agreed that the latter will vacate 5 lots in the 2100 MHz category. This effectively means more spectrum will be available to bid for. 3G auction will be held simultaneously with 2G in the upcoming auctions in February.

In a major boost for telecom companies ahead of the spectrum auction, the Defence Ministry has agreed to vacate some spectrum from the 2,100 Mhz band. Sources say the Department of Telecom has also finalised the reserve price for the upcoming auctions, reports CNBC-TV18's Malvika Jain.

According to sources, DoT and Defence Ministry have agreed that the latter will vacate 5 lots in the 2100 MHz category. This effectively means more spectrum will be available to bid for. 3G auction will be held simultaneously with 2G in the upcoming auctions in February.

Additionally, Defence and DoT are also in talks with each other to swap spectrum in the 2100 MHz category, which is going to be around 15 MHz of spectrum. Now if more spectrum is made available, then the concerns raised by Telecom Regulatory Authority of India (TRAI), and other telecom companies like Bharti Airtel , Vodafone, Idea Cellular  and Reliance Communications  about artificial scarcity of spectrum being created to inflate prices could be addressed. The decision as far as spectrum pricing, its reserve price and also the availability of spectrum will be sent to the Cabinet for approval shortly.

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