Indian regulator the Department of Telecommunication (DoT) has begun working on possible solutions following the weak result from this week’s 1800MHz auction. According to the Business standard the DoT is investigating alternative auction methodologies, financing solutions and lowering the reserve price as possible means to encourage operators to purchase spectrum left unsold after the auction earlier this week. As reported by CommsUpdate yesterday, the auction fell far short of expectations, with frequencies in four key circles attracting no interest from bidders and netting less than a quarter of the targeted income from the sales.
The failure of the auction has reportedly led ministry officials to rethink plans for the sale of 900MHz frequencies, which were to have even higher reserve prices. In light of the result of the 1800MHz sale, the current pricing mechanism does not seem feasible and is expected to be restructured.