The Telecom Regulatory Authority of India (Trai) has set the stage for next-gen spectrum public sale by slashing the reserve price of 5G airwaves in the 3300-3670 MHz band by around 36 per cent.
It has authorised organising personal networks by entry suppliers and advisable an administrative allotment of spectrum, an concept opposed by telecom corporations. These are a part of the Trai suggestions, launched on Monday.
Along with unsold spectrum in earlier auctions, the regulator has advisable auctioning all accessible spectrum in new bands akin to 600 MHz, 3300-3670 MHz, and 24.25-28.5 GHz.
In 2018, Trai had set Rs 492 crore because the reserve price per MHz of spectrum in the 3300-3670 MHz band. Now in keeping with the most recent suggestions, the price has been minimize to around Rs 317 for 20-year allotment. While this works out to around 36 per cent discount, it’s a lot decrease than the business demand, which was as much as a 90 per cent minimize.
Even the reserve price of Rs 6.99 crore per GHz of the 24.25-28.5 GHz band is increased than the business estimate, stated business sources. The reserve price for current accessible spectrum in different bands akin to 700 MHz has been proposed at Rs 3,920 crore per MHz.
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Since final yr, telecom corporations have carried out 5G trials in the 700 MHz, 3.5 GHz, and 26 GHz bands.
The authorities had earlier proposed finishing up spectrum public sale by May or June. The regulator has rationalised spectrum caps and a straightforward give up of spectrum. The regulator has set the principles for organising personal mobile networks.
“The Authority recommends that the spectrum for private network can be assigned administratively to the eligible captive wireless private network permission holders/Licensees on demand for specified geography on non-interference basis through a widely publicized online portal-based process in a fair and transparent manner,” Trai stated in its suggestions.
Telecom corporations have been opposing administratively allotting spectrum as a result of they suppose this might not create a stage enjoying discipline between them and such corporations.
Ankit Agarwal, managing director at STL, stated: “Initial estimates suggest around 35 per cent reduction in the spectrum pricing. This is a welcome move. It will play a pivotal role in bringing the country closer to its 5G dream. This will enable service providers to do additional capex and launch new-age services and business models.”
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