The Department of Telecommunications (DoT) seems to have not learnt any lesson from its failures in the previous rounds of spectrum auctions.  The DoT has reportedly not referred the matter of spectrum pricing back to telecom regulator Trai.

The DoT has so far also failed to brief the telecom regulator about how much spectrum in the 1800 Mhz band is contiguous.  In case telecom companies place bids and win contracts for spectrum that is not contiguous, they will be able to back out.

In other words, spectrum that is contiguous allows operators to create demand and back out, which would eventually lead to failure of the auctions.  Contiguous spectrum means the availability of spectrum in blocks of 5 Mhz each, which is required if operators are to offer 2nd generation, 3rd generation or 4th generation services with 1800 Mhz band.

The DoT has reportedly not asked the telecom regulator for new pricing for the 900 Mhz band of spectrum to be auctioned later this year.

The telecom regulator is unable to determine correct pricing for spectrum unless the DoT informs it about the available quantity of contiguous spectrum in each circle.

This issue of pricing has already divided the industry in two factions.  As incumbent operators are expected to surrender 900 Mhz spectrum they already own.  They will then have to bid again to regain access to the same spectrum, which is expected to be twice-as-expensive as the current 900 Mhz spectrum.  While incumbents are against this concept, newer operators are in favour of the idea.