TRAI recommends more than 35% reduction in base price of core 5G spectrum: The Tribune India


New Delhi, April 11

Telecoms regulator TRAI on Monday recommended a 35% reduction in the reserve price for core 5G spectrum frequencies in the 3300-3670 MHz band, to Rs 317 crore per MHz.

In issuing its highly anticipated recommendations, TRAI said that all available spectrum in the existing 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and new 600 MHz spectrum bands, 3300-3670 MHz and 24.25-28.5 GHz will be auctioned.

“To provide flexibility to telecommunications service providers, a block size of 10 MHz for the 3300-3670 MHz band and 50 MHz for the 24.25-28.5 GHz band is recommended. Spectrum should be allocated contiguous,” Trai said in a statement.

In total, the reserve price in the various tranches turns out to be almost 39% lower than that suggested last time, sources said.

For the main 5G frequency in the 3300-3670 MHz band, the all-India reserve price stands at Rs 317 crore per MHz, more than 35% lower than the Rs 492 crore/MHz suggested by Trai la last time.

The base price for the coveted 700Mhz band stands at Rs 3,927 crore per Mhz, 40% less than what was offered last time.

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

Spectrum auctions are expected to be conducted in 2022, to facilitate the deployment of 5G mobile services by 2022-23, by private telecom providers. The next generation of 5G will usher in super-fast speeds and spawn new-era services and business models.

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