The Union Cabinet has greenlit the much-anticipated telecom spectrum auctions, marking a significant milestone in India's telecommunications landscape. Anurag Thakur, the Minister of Information and Broadcasting, announced that the auctions would encompass eight spectrum bands for mobile phone services, with a staggering base price of Rs 96,317.65 crore.

This move comes as a crucial step towards addressing the burgeoning demand for spectrum allocation, ensuring the seamless provision of telecom services across the nation. The Cabinet's approval extends to interim allocations to telecom operators, providing a regulatory framework for spectrum management amidst ongoing processes such as insolvency proceedings.

Of particular note is the inclusion of spectrum held by companies undergoing insolvency proceedings, whose holdings are set to expire this year. By incorporating this spectrum into the auction, the government aims to optimize its utilization and promote efficient allocation within the telecom sector.

The spectrum auction will encompass a diverse range of bands, spanning from the widely utilized 800 MHz to the cutting-edge 26 GHz bands. A total of 10,523.8 MHz spectrum will be up for grabs, with the reserve price pegged at Rs 96,317.65 crore. This reserve price serves as a benchmark for determining the value of spectrum licenses, ensuring a fair and transparent bidding process.

"Existing telecom service providers can continue the use of spectrum by paying auction-determined prices during the interim period to prevent disruption in telecom services", said Anurag Thakur.

In addition to the spectrum auction, the Cabinet has also addressed spectrum allocation for the transport system, emphasizing passenger safety and operational efficiency. By reallocating and assigning spectrum to regional and urban rail-based transit systems, the government seeks to enhance the safety and reliability of public transportation services.

Furthermore, the establishment of a committee under the Cabinet Secretary underscores the government's commitment to effective spectrum management. This committee will spearhead efforts to finalize plans for the re-farming of certain spectrum bands, ensuring optimal utilization and alignment with evolving technological requirements.

Overall, the Cabinet's approval of the telecom spectrum auctions heralds a new chapter in India's telecommunications journey, paving the way for enhanced connectivity, innovation, and economic growth.