Introduction
The Spectrum Auction of 2016 represented another chapter in India’s telecom auction history, with significant developments and recurring issues in spectrum pricing and allocation. The auction began on 1st October 2016 and ended on 6th October 2016, lasting five days with a total of 31 rounds. This was a stark contrast to the 115 rounds seen in the previous 2015 auction, indicating diminishing interest and bidding intensity in the market. The subdued participation pointed to underlying challenges in the auction design, reserve pricing, and market dynamics.
Reserve Price
TRAI recommended the reserve prices for the 2016 auction through its recommendations dated 27th January 2016. The approach was similar to earlier auctions but featured a few twists to address perceived shortcomings. The following logic was used for calculating reserve prices:
