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HomeDigit News5G: TRAI suggests 35% cut in base price of 5G spectrum, continues...

5G: TRAI suggests 35% cut in base price of 5G spectrum, continues to recommend auction

TRAI News: Telecom regulator TRAI today recommended a 35 per cent cut in the reserved price for 5G spectrum in the 3300-3670 MHz band and suggested it to be kept at Rs 317 crore per MHz. The Telecom Regulatory Authority of India (TRAI), while presenting its much-awaited recommendations on spectrum prices, has suggested keeping the reserved prices for various spectrum bands around 39 per cent lower than last time.

Auction of all existing spectrum in new spectrum band
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 new spectrum bands of 600 MHz, 3300-3670 MHz and 24.25-28.5 GHz will be replaced by all existing spectrum. Auction will be held.

Government preparing to auction spectrum this year
The government is preparing to auction spectrum this year. Private telecom providers have to give 5G spectrum to start 5G mobile services in the current financial year 2022-23. With this, the speed of internet and uploading is expected to be very fast.

TRAI kept the reserve price lower than last time – sources
“In order to give flexibility to the telecom service providers, it has been recommended to keep a block of 10 MHz for the 3300-3670 MHz band and 50 MHz for 24.25-28.5 GHz,” TRAI said in a statement. According to sources, TRAI has kept the reserved price around 39 per cent lower in different bands this time as compared to the suggestions last time.

Know TRAI’s spectrum price for different MHz
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 less than the last time. Last year, TRAI had recommended a reserve price of Rs 492 crore per MHz for this spectrum. Along with this, the base price for 700 MHz has also been recommended to be kept at Rs 3,927 crore per MHz, which is 40 percent 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.

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