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

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.

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.