The government will conduct simultaneous multiple round e-auction for sale of telecom spectrum before August 31, according to guidelines finalised by the department of telecom.

DoT, sources said, will conduct a simultaneous, multiple round ascending e-auction, details of which would be notified separately.

Details about reserve price, terms of payment and annual spectrum usage charges would be announced after an empowered group of ministers (EGoM) decides on them.

"The broad stipulations shall be: the bidding shall be service area wise; reserve price shall be set for each service area; and the government reserves the right to disqualify any bidder for violation of auction rules," the guidelines said.

In the 1800 Mhz band, which would be used by GSM operators to offer services, the government plans to offer 8-11 blocks of 1.25 MHz of airwaves, while in 800 MHz band, 3-4 blocks would be put to auction, sources said.

In the 1800 MHz band, existing players like Bharti Airtel and Vodafone can bid for a maximum of two blocks, while new operators would be required to bid for minimum of four blocks.

"The spectrum assigned shall be liberalised. In other words, spectrum in any band can be used for providing any service within the scope of respective service licences using any technology," sources said.

Sources also suggest that the government has extended the deadline for submitting bids by prospective agencies to conduct e-auction of spectrum in 22 telecom service areas to July 20.

The spectrum auction is vital for companies like Sistema Shyam Teleservices, Uninor and Videocon whose telecom licences have been cancelled by the apex court but they are still looking to continue their services with fresh permits.

The supreme court has mandated conducting the auction before August 31, while giving these companies permission to operate till September 7, after which it is a must for them to get spectrum through auction process.