TRAI has suggested a reduction in the base price of 5G spectrum. Let us inform that in the year 2018, TRAI had kept the base price at Rs 492 crore per MHz, which has been cut by about 35~40 percent.
The Telecom Regulatory Authority of India (TRAI) has suggested a cut in the base price of 5G spectrum. In such a situation, the hope of starting 5G service in India soon has increased. TRAI has recommended a reduction of 35-40 per cent in the base price of spectrum auction. TRAI’s suggestion will be sent to the Department of Telecommunications (DoT) for approval.
If the Department of Telecom accepts the suggestion of TRAI, then there will be less financial burden on the telecom companies. In such a situation, it is expected that the price of 5G service may remain low in India. TRAI has proposed to give 30 years time to telecom companies for spectrum payment.
TRAI Suggestion on Spectrum Price
Having said this, in the last spectrum auction process, many spectrum bands were not sold. This time TRAI has recommended a reduction in the base price of spectrum bands. Whose demand was being made by telecom companies for a long time. TRAI has recommended a reserve price of Rs 317 crore for the auction of 5G spectrum (3300-3670 MHz) for all telecom circles across the country. Let us tell you that in the year 2018, TRAI had kept the base price at Rs 492 crore per MHz, which has been cut by about 35-40 percent.
5G Spectrum Auction
The existing 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz and 2500MHz bands will be auctioned. Along with this, new spectrum bands of 600MHz, 3300-3670MHz and 24.25-28.5GHz will be auctioned. While 10MHz and 50MHz are recommended to be blocked.
TRAI has also suggested a 40 per cent cut in the base price for 700Mhz spectrum. Which has been reduced to Rs 3,927 crore per MHz as compared to 2018. The same reserve has been suggested for 800MHz at Rs 3,620 crore per MHz. The base price of spectrum in the 700MHz band has been cut the most for Delhi and Mumbai circles. Where the base price for Delhi circle is Rs 509 crore, while for Mumbai circle it has been proposed to have a base price of Rs 470 crore.