TRAI Suggests Sharp Reduction In 5G Spectrum Band Base Price - NDTV Profit

TRAI has suggested cuts in base price of 5G air waves to attract greater competition

Telecom Regulatory Authority of India (TRAI) has recommended slashing the base price of 5G airwaves, suggesting 40 per cent reduction in the price of 700 MHz band and 36 per cent cut in the spectrum frequency of 3300-3670 MHz bands. This, it said, would attract competitive bidding by major telecom players like Airtel, Jio and Vodafone Idea.

Releasing its recommendations on Monday, TRAI stated that all available spectrum in the existing bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and the new spectrum bands of 600 MHz, 3300-3670 MHz and 24.25-28.5 GHz, will be put to auction.

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

TRAI further informed that the pricing recommendations were for spectrum with a 20 year period. "The reserve price of spectrum allocation in case of 30 years should be equal to 1.5 times the reserve price of spectrum allocation for 20 years for the respective band,” it said.

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

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.

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TRAI Suggests Sharp Reduction In 5G Spectrum Band Base Price - NDTV Profit
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