The department of telecom (DoT) issued an 'information memorandum' on Monday containing details of spectrum auction which will start from November 12. Earlier in the day, the supreme court had extended the time for completing the auction of spectrum by January 11, 2013, from earlier deadline of August 31. According to the information memorandum issued by the DoT, notices to invite application will be issued on September 28 for two different airwaves band used for mobile telephony and companies interested in auction will have to submit their applications by October 19.

DoT will first auction airwaves used for wireless telecom services in 1,800 Mhz band that are at present used for 2G GSM mobile telephone services. The department will start auction process of 800 Mhz band spectrum, currently used for CDMA-based mobile services, two days after completion of bidding for 1,800 Mhz band. DoT will auction minimum of eight blocks each of 1.25 MHz (10 MHz) in all 22 telecom circles. It will add 3 blocks more to meet the requirement of new entrants, wherever available, in case need for such top-up arises.

A new entrant will have to win minimum of four blocks of spectrum in a service area to start business in India. Government has fixed base price of Rs 13,999.96 crore for 5 Mhz of pan-India spectrum in 1,800 Mhz band and Rs 13,649.97 crore for 3.75 Mhz of 800 Mhz spectrum. The memorandum states that new companies interested for buying airwaves in 1,800 Mhz band can buy up to 5 blocks of airwaves with each block having 1.25 Mhz spectrum. However, there is a cap of 3 blocks for bidders in 800 Mhz band.

Existing players for 1,800 Mhz band will be allowed to bod for maximum of two blocks of spectrum. However, in case of 800 Mhz band, existing players will be allowed to bid for only one block of spectrum