India’s telecoms ministry (DoT) has announced a new schedule for the planned auction of 3G mobile frequencies in the 2100 MHz band. The deadline for submitting applications is now set as 19 March. The government will announce the qualified bidders by 30 March, with bidding set to commence on 9 April. The DOT will auction three or four 3G licences for each of the 22 regional circles. The 2100 MHz spectrum will be available in blocks of 2x5MHz. The auction of broadband wireless (BWA) spectrum will start two days after the end of the 3G auction.

The Government of India (the “Government”), through the Department of Telecommunications (“DoT”), proposes to allot the rights to use certain specified radio spectrum frequencies in the 2.1GHz band (the “3G Spectrum”) and in the 2.3GHz band (unpaired) (the “BWA Spectrum”) by means of auction in various telecom service areas in India.

Separate auction processes will be carried out for allotting 3G Spectrum blocks (the “3G Auction”) and BWA Spectrum blocks (the “BWA Auction”) respectively. Together, the 3G Auction and the BWA Auction are referred to in this document as the “Auctions”.

However, it may be noted that the Government reserves the right to use any other means to allot the spectrum as it may deem fit without assigning any reason whatsoever.

On behalf of the President of India, applications are invited from prospective bidders who meet the eligibility criteria to submit applications for participating in the 3G Auction and the BWA Auction respectively (the “Applications”). Separate Applications are required for the 3G Auction and the BWA Auction. Based on the Applications, the Government shall pre-qualify Applicants who meet the eligibility criteria for participation in the relevant Auction.

The Government reserves the right to summarily disqualify any pre-qualified Bidder, at any stage of the Auctions or after the Auctions are completed on grounds of noncompliance with eligibility conditions, misrepresentation, non-compliance with the relevant Auction Rules, non-compliance with any other pre-condition prescribed for participating in the relevant Auctions or for getting the spectrum, or any matter that may, in the opinion of the Government, be contrary to general public interest.

Interested parties may obtain a copy of this document and any subsequent amendments to it (together, the “Notice”) from the DoT website.

Timetable
The table below sets out the current timeline. The Government reserves the right to determine the overall timeline of the Auctions or to amend it from time to time.

Auctions timetable
Last date for submission of Applications: 19th March, 2010
Publication of ownership details of Applicants: 23rd March, 2010
Bidder Ownership Compliance Certificate: 26th March, 2010
Pre-qualification of Bidders: 30th March, 2010
Mock Auction: 5th-6th April, 2010
Start of the 3G Auction: 9th April, 2010
Start of the BWA Auction 2 days from the day of close of the 3G Auction
Payment of the Successful Bid Amount Within 10 calendar days of the close of the relevant Auction

Note:
Any changes in the Auction Timelines will be communicated through the Auctions website. Participants are requested to monitor the Auctions website actively.

Spectrum to be auctioned
Rights to use spectrum at specified frequencies in the following bands (subject to fulfilment of eligibility conditions, relevant licence conditions and any particular conditions related to specific frequency blocks) for a period of 20 years (from the date of award of right to commercially use the allocated spectrum block) are being offered for award.
3G Auction
􀂃 2.1GHz, paired, in blocks of 5MHz, i.e. each block of 2X5MHz
BWA Auction
􀂃 2.3GHz, unpaired, in blocks of 20MHz Spectrum usage rights shall be awarded separately for specific service areas. The spectrum shall not be used for any activity other than the activities for which the operator has a licence. The award of spectrum by itself does not confer the right to provide services. For instance, in order to provide mobile telephony using the 3G Spectrum, the Successful Bidder will also need to possess or acquire, as the case may be, a UAS/ CMTS licence for the relevant service areas. Similarly, in order to provide BWA services using the BWA Spectrum, the Successful Bidder will also need to possess (or acquire) a UAS/ CMTS/ ISP-category ‘A’ licence. The detailed conditions that must be satisfied by potential Bidders in order to participate in the various Auctions are described in Section III.