New Delhi, Jun 25 (IANS): The Centre on Tuesday announced it has begun the auction of spectrum worth Rs 96,238.45 crore for telecom services.

The total quantum of spectrum being auctioned is 10,522.35 MHz in various bands, valuing Rs 96,238.45 crore at reserve prices, said the Ministry of Communications.

The following spectrum bands will go up for bidding in the auction -- 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz -- that starts at 10 a.m.

The auction will see participation from three bidders: Bharti Airtel, Vodafone Idea and Reliance Jio Infocomm.

“To augment existing telecom services and maintain continuity of services, the government will hold the spectrum auction on Tuesday,” said the ministry.

The 1800 MHz spectrum band has been allocated Rs 21752.4 crore at reserve price, followed by the 800 MHz band at Rs 21,341.25 crore.

“This is in line with the government's commitment to facilitate affordable, state-of-art high-quality telecom services to all the citizens,” the ministry added.

The Department of Telecommunications (DoT) initiated the spectrum process on March 8.

Spectrum will be assigned for a period of 20 years. Successful bidders will be allowed to make payments in 20 equal annual instalments, duly protecting the NPV at the interest rate of 8.65 per cent.

Spectrum acquired through this auction can be surrendered after a minimum period of 10 years. There will be no Spectrum Usage Charges (SUC) for spectrum acquired in this auction, said the ministry.