DoT to ask Trai to cut floor price of 5G spectrum

Telecom operators insisted that the prices recommended were unaffordable.

The Department of Telecommunications (DoT) is likely to ask the government to cut the floor price for 5G spectrum auctions as telecom operators insisted that the prices recommended by the Telecom Regulatory Authority (Trai) of India were unaffordable.

In the first auction of radio airwaves in five years earlier this month, the government offered 2,308.80 MHz of spectrum in seven bands, at a reserve price of nearly Rs 4 lakh crore. However, airwaves in the premium 700 MHz and 2,500 MHz bands went unsold.

“We’ll have to go back to Trai as the situation has changed after the recent 4G auctions where 700MHz band has remained unsold. However, it is finally up to the regulator whether they want to lower the prices," an official aware of the development told Mint.

The auctions allow companies to use government-owned airwaves for carrying signals for data and voice, for a particular period of time.

Read | Spectrum auction outcome surpassed estimates; industry's debt levels to rise further: ICRA

While there was no interest in the 700 MHz band this time around too, the 2,100 MHz band witnessed "muted" participation.

Airtel pointed out that despite a large amount of spectrum made available, the 700 MHz band did not get any bid from the operators as it made "no economic case" for them due to high reserve prices.

Reliance Jio Infocomm Ltd said it acquired the right to use spectrum in all 22 circles or zones across India. In all it won 488.35 MHz of spectrum, taking up its spectrum footprint by 55 per cent to 1,717 MHz.

Bharti Airtel said it won spectrum across Sub GHz, mid-band and 2,300 MHz bands, giving it a secured pan-India footprint will help improve its deep indoor and in-building coverage in every urban town.

(With agency inputs)