TRAI cuts 5G spectrum base price

The Telecom Regulatory Authority of India (TRAI) has suggested a 35-40% cut in the floor price for auction of spectrum for providing 5G services in India. The regulator has suggested a lower base price for all bands compared to the price in the 2021 auctions. TRAI has cut the base price after nearly 60% of the spectrum remained unsold during the 2016 and 2021 auctions.

The reserve price of the spectrum allocation in the case of 30 years will be 1.5 times the reserve price for 20 years for the respective band, the regulator said.

TRAI has said all available spectrum existing and new spectrum bands should be put to auction. These bands include 600MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, and also 3300-3670 MHz and 24.25-28.5 GHz.

TRAI has this time suggested deployment of the 5G network in 3300-3670 MHz and 24.25-28.5 GHz bands. It has been suggested that there should be easy network deployment-based roll-out conditions for these bands. The regular has said the roll-out obligations and associated conditions for the 600 MHz band will be the same as for the 700 MHz band.

Rationalising spectrum caps, TRAI has done away with the overall cap across all bands. A cap of 40% has been advised on combined spectrum holding in sub-1 GHz bands, while a 40% cap has been recommended on combined spectrum holding in 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands. The individual band-specific cap of 40% has been suggested for 3300-3670 MHz and 24.25-28.5 GHz spectrum bands.

TRAI also suggested a 5-year roadmap on spectrum should be made available for International Mobile Telecommunication each year, which will provide certainty, enable the bidders to make informed decisions and may also encourage new entrants.

For uptake of 5G use cases in different verticals, a 5G-dedicated inter-ministerial working group (IMWG), under the chairmanship of member (technology), Department o Telecommunications (DoT), should be formed comprising various ministries and Niti Ayog as members.

Telecom innovation centres will be formulated with different academic institutions and ministries, to develop solutions for 5G use cases and applications in different sectors, TRAI said.

The current recommendations come after DoT's request last year. DoT had sought them on the applicable reserve price, band plan, block size, the quantum of spectrum to be auctioned and associated conditions for auction of spectrum in various bands for the rollout of 5G services.

The current recommendations are based on the responses to a consultation paper issued by TRAI on November 30, 2021, seeking inputs from stakeholders.