TRAI Recommends 36 Percent Cut in Reserve Price for 5G Spectrum Frequencies in India

The price cut brings in some much-needed relief to the cash-strapped telecom sector in the country.

By Press Trust of India | Updated: 12 April 2022 13:59 IST

TRAI Recommends 36 Percent Cut in Reserve Price for 5G Spectrum Frequencies in India

Photo Credit: Reuters

TRAI has advised part payment with flexibility of moratorium for telecom operators

Highlights

TRAI says all available spectrum will be put to auction
5G spectrum will be assigned in a contiguous manner, according to TRAI
5G spectrum trials are slated to take place later this year

Telecom regulator TRAI on Monday recommended a 35 percent cut in the reserve price for prime 5G spectrum frequencies in 3300-3670MHz band, at Rs. 317 crore per MHz. Releasing its much-awaited recommendations, TRAI said that all available spectrum in the existing bands of 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 2500MHz and the new spectrum bands of 600MHz, 3300-3670MHz and 24.25-28.5GHz, will be put to auction.

"To provide flexibility to the telecom service providers, block size of 10MHz for 3300-3670MHz band and 50MHz for 24.25-28.5GHz band recommended. Spectrum to be assigned in a contiguous manner," TRAI said in a statement.

In all, the reserve price across various bands works out to be nearly 39 percent lower than that suggested last time, sources said.

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For the prime 5G frequency of 3300-3670MHz band, all-India reserve price adds up to Rs. 317 crore per MHz, which is over 35 percent lower than the Rs. 492 crore/MHz suggested by TRAI last time.

The base price for coveted 700Mhz band works out to be Rs. 3,927 crore per Mhz, which is 40 percent lower than that proposed last time.

The Telecom Regulatory Authority of India (TRAI) said that for the long-term growth and sustainability of the telecom sector, infusing liquidity and encouraging investment, the telecom service providers should be allowed easy payment options, including part payment with flexibility of moratorium.

The spectrum auctions are slated to be conducted in 2022, to facilitate the rollout of 5G mobile services within 2022-23, by private telecom providers. The next generation 5G will usher in ultra high-speeds and spawn new-age services and business models.

Why is 5G taking so long? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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