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

  • April 12, 2022, 12:22 p.m.

The Telecom Regulatory Authority of India (TRAI) has recommended slashing the base price of 5G airwaves, suggesting a 40 per cent reduction in the price of the 700 MHz band and a 36 per cent cut in the spectrum frequency of the 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 up for auction.

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

TRAI further informed us that the pricing recommendations were for spectrum with a 20-year period. "The reserve price of spectrum allocation in the 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 in 2022–23 by private telecom providers. The next generation, 5G, will usher in ultra-high speeds and spawn new-age services and business models.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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