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TRAI proposes a significant reduction in the base price of the 5G spectrum band

The Telecom Regulatory Authority of India (TRAI) has proposed lowering the basic price of 5G airwaves by 40% for the 700 MHz bands and 36% for the spectrum frequency of 3300-3670 MHz bands. This, it added, will entice big telecom operators including Airtel, Jio, and Vodafone Idea to compete.

 

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TRAI indicated in its recommendations released on Monday that all available spectrum in the current bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, and the new bands of 600 MHz, 3300-3670 MHz, and 24.25-28.5 GHz shall be auctioned off.

 

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TRAI further said that the pricing suggestions were for a spectrum with a 20-year life cycle. It said that the reserve price of spectrum allocation for 30 years shall be 1.5 times the reserve price of spectrum allocation for 20 years for the appropriate band.

 

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Overall, the reserve price across multiple bands is roughly 39% lower than that indicated last time, according to PTI.

 

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According to TRAI, telecom service providers should be offered convenient payment choices, including part payment with moratorium flexibility, for long-term growth and sustainability of the telecom industry, injecting liquidity, and stimulating investment.

 

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The spectrum auctions are scheduled to take place in 2022 in order to support the launch of 5G mobile services by private telecom companies between 2022 and 2023. The next-generation 5G network will bring in ultra-high speeds and usher in new-age services and business models.

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