TRAI recommends 36% reduction in reserve price for 5G spectrum frequency

Telecom regulator TRAI on Monday recommended a 35 per cent reduction in the reserve price for prime 5G spectrum frequencies in the 3300-3670MHz band, Rs. 317 crore per MHz. Revealing its long awaited recommendations, TRAI stated that the existing bands of existing 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 2500MHz and new spectrum 602Hz-502Hz, 02Hz-53Hz will have all available spectrum. To auction

“To provide flexibility to telecom service providers, 10MHz block size is recommended for the 3300-3670MHz band and 50MHz for the 24.25-28.5GHz band. Spectrum will be allocated in a coherent manner,” TRAI said in a statement.

In all, the reserve price across the various bands works about 39 percent lower than last time, sources said.

For Prime 5G frequencies in the 3300-3670MHz band, the all-India reserve price is Rs. Adds up to 7 317 crore per MHz, which is 35 per cent less than Rs TRAI last proposed 492 crore / MHz.

The base price of the alluring 700Mhz band is Rs. 3,927 crore per MHz, which is 40 per cent less than last year’s proposal.

The Telecom Regulatory Authority of India (TRAI) has said that for the long-term growth and sustainability of the telecom sector, to facilitate liquidity and encourage investment, telecom service providers should allow easy payment options, including partial payment with suspended flexibility.

Spectrum auctions are scheduled to be conducted in 2022 to facilitate the launch of 5G mobile services by private telecom providers between 2022-23. The next generation 5G will usher in ultra-high-speed and create a new era of service and business models.

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