Centre to allot spectrum sans auction to Bharti Airtel, Vodafone Idea for three months: Report

The Centre is set to allot spectrum to Bharti Airtel and Vodafone Idea without an auction, CNBC Awaaz reported Wednesday citing sources. The decision is being taken due to a shortage of time to conduct a sale of airwaves, as per the television channel.

As per the sources quoted by CNBC Awaaz, six licenses of Airtel and Vi are going to expire in February and March in Jammu & Kashmir, Uttar Pradesh (East), and West Bengal.

Airtel’s spectrum in the 900 MHz and 1800 MHz bands will expire this year in eight markets – West Bengal, UP-East, UP-West, Bihar, Odisha, Assam, Northeast and J&K.

As per the TV report, it is not feasible for the government to conduct a full-fledged spectrum auction as it requires a minimum of 45 days. Both telcos will be allotted spectrum for a period of three months, and Airtel and Vi both will have to cough up the reserve price of the allotted airwaves.

Airtel and Vi will have to pay the full price of the spectrum in March after the conclusion of the auction, the report said.

All unsold spectrum from the last sale, barring the 600 MHz, is going to be put on the table again. The airwaves in 600 MHz are likely to be sold in future auctions, ET separately reported in its January 7 edition. However, the bidding intensity is likely to be subdued as 5G spectrum needs have been met for the time being.