The department of telecommunications (DoT) on Thursday issued notice inviting applications (NIA) for auction of spectrum in 1800MHz and 900MHz bands. The auction will begin on January 23.  The last date for the applications is 04-01-2014.

The validity of spectrum in this auction shall be 20 years with the option of deferred payment. The auction format is simultaneous, multiple round ascending auction.

NIA contains detailed terms and conditions regarding reserve price, pre-qualification conditions, Earnest Money Deposit (EMD), Auction Rules, etc. Total Spectrum put to Auction is 46 MHz in 900 MHz band and 403.2 MHz in 1800 MHz band.

“The award of spectrum in 1800MHz and 900MHz band shall be conducted as a single process. A common notice has been issued only for the sake of convenience,” The NIA issued late Thursday night said.

A company (in both band categories) can hold upto 25% of spectrum assigned to all companies in a service area and up to 50% of airwaves (allotted to all companies) in a particular band assigned in a service area, the NIA said.

NIA mentioned allowing spectrum-sharing, mergers and acquisitions and spectrum trading, for which detailed guidelines will be announced later.

NIA said companies who buy spectrum through the auction will be able to share airwaves for providing mobile phone services.