For the first-ever spectrum auction in Nepal, Ncell bids a higher amount than Nepal Telecom to get the additional frequency in the 1800 MHz band. Only two companies Ntc and Ncell were eligible to participate in the spectrum auction of the residual frequency in 900, 1800 and 2100 MHz. Out of this, NTA started the auction process from the 1800 MHz band and Ncell becomes the successful bidder.
The spectrum auction process started last year for the remaining frequency in 900 MHz, 1800 MHz, and 2100 MHz band. But the process was on hold due to the court’s intervention at first and then due to the Ncell’s CGT case, which is almost settled now.
As the telecom operators need to clear all the pending dues to be eligible, the top two telecom operators Ntc and Ncell applied for the first spectrum auction in Nepal.
The first-ever spectrum auction took place at Soaltee Hotel in the Capital on Wednesday. The auction took 3 rounds of the bidding process and finally settled with the Ncell’s bid price per MHz at 5 crore and 80 lakhs. The final bid price amount of Ncell is higher than that of Ntc by around 80 lakhs.
In the first round, Nepal Telecom bid the price of per MHz bandwidth at Rs 3 crore and 78 lakhs while Ncell bid at Rs 3 crore and 96 lakhs. Then the base price was increased by 5 percent to the second round. Then Ntc bid at Rs 4 crore 20 lakhs and Ncell bid at Rs 4 crore and 32 lakhs in the second round.
Lastly, in the third round, Ncell bid Rs 5 crore and 80 lakhs while Ntc bid at Rs 5 crore and 1 lakh amount per MHz bandwidth. With the highest amount of bid price, Ncell won the auction to get the additional frequency.
Both the companies got 20 minutes, 30 minutes and 50 minutes time period to submit the sealed bid price for first, second and third round.
Although the bidding process culminated in the Ncell’s win, NTA will provide the additional frequency to Ncell, only after settling the CGT issue with the payment of the allocated amount of Rs 21 Arab and 10 crores.
Source: https://www.nepalitelecom.com/ncell-1800-mhz-spectrum-auction.html