Spectrum auction in India

Question 1

What is spectrum?

Answer 1

radio frequencies allocated to the mobile industry and other sectors for communication over the airwaves.

[RADIO FREQUENCIES CHA EK BUNCH JO VIA AIRWAVES TELECOMMUNICATION SATHI VAPRALA JATO]

Question 2

What is Simultaneous Multiple
Round Ascending (SMRA) Auction?

Answer 2

Paul R. Milgrom and Robert B.
Wilson, the Nobel Laureates this
year in Economic Sciences pioneered the SMRA (partly with Preston McAfee) as a proven methodology for successful auctions.
[BY MILGROM & WILSON -> HAVE NOBEL]

The SMRA auction format lets bidders bid on multiple individual lots at the same time. It better caters for lots that are substitutes or complements.
[ALLOWS BIDDING ON MULTIPLE INDIVIDUAL LOTS]

In an SMRA auction of spectrum, lots typically correspond to the right to use a specific frequency block (or blocks) in a defined geographic area. A number of single lots are open for bidding at the same time. All lots remain open as long as there are acceptable bids placed on any lot.
[LOT = RIGHT TO USE SPECIFIC FREQUENCY BLOCK]

Question 3

TRAI?

Answer 3

The Telecom Regulatory Authority of India (TRAI) was set up in order to have a suitable environment for the growth of the telecommunications industry in the country and be a part of the global information society. It is a statutory body and regulates the telecommunications sector in the country.

[STATUTORY BODY ;
REGULATES TELECOMMUNICATIN SECTOR]

Question 4

What is reserve price?

Answer 4

the price stipulated as the lowest acceptable by the seller for an item sold at auction.
[LOWEST ACCEPTABLE PRICE]

Question 5

Who are Over The Top communication providers?

Answer 5

These services (e.g. VoIP) provide real-time person to person telecommunication services. These services are similar to the telecommunication services provided by the licensed telecom service providers (TSPs) but are provided to the users as applications carried over the internet using the network infrastructure of TSPs. Essentially OTT communications services compete with the services provided by TSPs riding on the infrastructure created by TSPs.

Question 6

What is Voice Over Internet Protocol (VoIP)?

Answer 6

Voice over Internet Protocol, also called IP telephony, is a method and group of technologies for the delivery of voice communications and multimedia sessions over Internet Protocol networks, such as the Internet
[DELIVERY OF VOICE COMMUNICATIONS OVER INTERNET PROTOCOL NETWORKS LIKE INTERNET]

Question 7

Important features of auction?

Answer 7

• Spectrum will be offered for validity period of 20 years.
• Succesful bidders will also have to pay 3% of adjusted gross revenue excluding wireline services as spectrum usage charges for the spectrum

[FOR 20 YEARS ; 3% USAGE CHARGES ON SPECTRUM]