Telecom Regulatory TRAI (TRAI) has recommended a 35 per cent cut in the reserve price for 5G spectrum in the 3300-3670 MHz band. TRAI suggested keeping it at Rs 317 crore per MHz.
TRAI, while presenting its much-awaited recommendations on spectrum prices, has suggested keeping the reserve price for different spectrum bands around 39 per cent lower than last time.
Government will auction spectrum this year
TRAI has said that all existing spectrum in the existing bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz and in the new spectrum bands of 600 MHz, 3300-3670 MHz and 24.25-28.5 GHz will be sold. Auction will be held.
The government is preparing to auction spectrum this year. To start 5G mobile services in the current financial year 2022-23, private telecom companies have to give 5G spectrum. This is expected to make the internet and uploading speed much faster.
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Know what TRAI said?
“In order to give flexibility to the telecom service providers, it has been recommended to keep a block of 10 MHz for 3300-3670 MHz and 50 MHz for 24.25-28.5 GHz band,” TRAI said in a statement. This time around 39 per cent less reserve price has been kept in different bands as compared to the suggestions last time. The all-India reserve price for 5G spectrum of 3300-3670 MHz, considered the most important, has been kept at Rs 317 crore per MHz, which is 35 percent lower than last time. Last year, TRAI had recommended a reserve price of Rs 492 crore per MHz for this spectrum.
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Simultaneously, the base price for 700 MHz has also been recommended to be Rs 3,927 crore per MHz which is 40 per cent lower than the previous suggestions. TRAI said that telecom service providers should be allowed easy payment options for the long-term growth and sustainability of the telecom sector, to infuse liquidity and increase investment.