Cut 5G spectrum base costs by 35-40%, suggests Trai

The Telecom Regulatory Authority of India (Trai) on Monday really useful slashing the bottom worth between 35 and 40 per cent for public sale of main 5G spectrum airwaves, whereas additionally suggesting that each one out there spectrum within the present bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz in addition to the newer frequency bands of 600 MHz, 3300-3670 MHz, and 24.25-28.5 GHz even be put up for public sale.

“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,” Trai stated.

🗞️ Subscribe Now: Get Express Premium to entry the very best Election reporting and evaluation 🗞️

In its suggestions for the public sale of the 5G spectrum, the telecom regulatory physique urged that the bottom worth for prime 5G band of 3300-3670 MHz be saved at Rs 317 crore per MHz, which is 35 per cent decrease than the bottom worth of Rs 492 crore per MHz introduced in 2018. Similarly, for the 700 MHz, the worth really useful by Trai comes out to Rs 3,297 crore, which is sort of 40 per cent decrease than costs really useful by the regulatory in 2018.

The reserve costs, nevertheless, will likely be for a interval of 20 years. In case the spectrum is allotted for a interval of 30 years, the bottom worth to be thought of ought to be 1.5 instances the worth really useful for the 20 12 months interval, Trai urged.

In its reforms bundle introduced for the telecommunications sector in September 2021, the Department of Telecommunications (DoT) had stated in all future auctions, the tenure for which spectrum might be held could be prolonged to 30 years from 20 years presently.

In its suggestions, Trai has additionally urged easing a few of the minimal roll out (MRO) obligations for deployment of 5G by the brand new entrants within the telecom sector. For instance, within the 700 MHz, 800 MHz, 900 MHz, and 1800 MHz bands, Trai has urged that the time interval for MRO ought to be prolonged to 2 years from 1 12 months presently.

Over these two years, the MRO obligation ought to be 40 per cent of the protection for the primary 12 months, and 90 per cent for the second 12 months.

In line with the coverage change introduced by the DoT in September 2021, the Trai has additionally urged that telecom service suppliers ought to be allowed to give up spectrum simply by paying a spectrum give up payment of Rs 1 lakh per spectrum band per Licenced Service Area (LSA).

To enhance ease of doing enterprise within the telecom sector, the DoT had in September urged this measure as a manner of permitting telcos to return the spectrum they have been not utilizing. Enterprises that wish to create a non-public community for his or her captive use might request telecom service suppliers “establish an independent isolated private network in enterprise’s premises using the company’s spectrum”, the regulator really useful.