The Department of Telecom has said that the auctioneer will not get any fee if the bid price does not increase beyond the base price in the upcoming auction.
The fee payable will be a total of Rs 5 crore for both 800MHz and 1800MHz bands, combined pro-rated for the number of service areas where the auctions are conducted.
“Payment shall be made for actual auctions conducted. No other payment shall be made to any charge or expenditure,” a note seen by
The Department said the fee should be inclusive of all statutory levies and taxes applicable on the date of submission of bid (July 30). No variation in fee will be permitted during the currency of the contract.
The payment to the auctioneer will be made within a period of one month from the date of receipt of payment of first instalment of 33 per cent or 25 per cent (as the case may be) of the successful bid amount from the winning bidder in the auction, the note said.
The goal is to commence the first simultaneous, ascending e-auction of spectrum in all the 22 telecom service areas by November. Thereafter, auctions would be conducted from time to time within one year as per need.
It will also depend upon the availability of spectrum in different telecom service areas.
In case the DoT identifies more blocks of spectrum in a particular service area, subsequent to the completion of e-auction process there, the Government may ask the auctioneer to again conduct the e-auction of that area within the currency agreement and no extra payment will be made for this, the note said.
A lumpsum drop dead fee of Rs 2.5 lakh per service area will be paid to the auctioneer and no other fee will be payable if the Government abandons the auction at any stage afterward to the auctioneer in one or more or all of the service areas.
The total drop dead fee will be limited to a maximum of Rs 10 lakh, the note added.
The DoT recently selected Times Internet Ltd along with its consortium partner e-Procurement Technologies Ltd as the auctioneer.