Ministry may reject TRAI draft on WiMAX too

After turning down TRAI’s recommendations on 3G and deciding to allow foreign players, the communication ministry now plans to throw out the regulator’s recommendations on Broadband Wirelss (also called WiMAX) spectrum auctions, too, and impose its own rules.

While TRAI had said that ISPs, who are successful in the broadband wireless (BWA) auctions, be given licences for five years, the Department of Telecom (DoT) wants to raise this time frame to 15 years. Again, TRAI had said BWA or WiMAX spectrum should be auctioned through a one-stage sealed bid for every circle, but the DoT plans to have a simultaneous ascending e-auction model instead.

Importantly, the DoT’s decision to double the reserve price for the 3G spectrum will have a direct impact on the WiMAX auctions. This is because; the reserve price for the WiMax (Worldwide Interoperability for Microwave Access) spectrum auction is likely to be set at fourth 3G spectrum price.

This implies, when the policy is announced, the reserve price for BWA auctions is set to be double of that prescribed by TRAI, which is yet another deviation from the regulator’s recommendations.

ET has also learnt that the DoT is set to make further changes to TRAI’s recommendations for BWA spectrum issues. For instance, while TRAI has said that each player must get WiMAX spectrum in contiguous blocks of 15 MHz each in the 3.3 - 3.4 GHz and 3.4 - 3.6 GHz bands, the DoT has a completely different plan in mind: “As per present estimate of availability of spectrum four blocks each of 10 MHz in the 2.5 GHz and 2.3 GHz to be allocated,’ the DoT note on the issue said.

On the auction procedure, the note said: “In place of the above (TRAI’s suggestion of a one-stage sealed bid), it is proposed to have a controlled simultaneously e-auction as similar to that in the case of 3G spectrum. Further, here also when the number of bidders left is equal to the number of blocks of spectrum being auctioned, in any service area, the auction will end.

All the bidders will have to match the bid of the highest bidder. In case they do not match, then that block would be offered to the next highest bidder at the highest bid price. If any block is left vacant, then the block would be re-auctioned”.

Source : EconomicTimes