Trai to issue consultation paper on spectrum auction this week

The stage will be set for another round of spectrum auction as the Telecom Regulatory Authority of India (Trai) on Monday said consultation paper on bidding of radio waves will be released this week.

Discussion paper of spectrum auction and pricing is ready and it may be released this week, Trai chairman R S Sharma told reporters here on the sidelines of an event.

Besides pricing, the regulator is likely to invite suggestions from stakeholders on schedule for the next air waves sale that would include premium 700 Mhz band besides spectrum to be used for 5G airwaves, said an official from the Trai. During the last auction, the government had put airwaves worth Rs 5.66 lakh crore for sale. In the five-day auction, seven telcos made commitments of Rs 65,789 crore for buying 964.80 MHz of spectrum in various frequency bands. However, in the last auction nearly 60% of the spectrum remained unsold (in all 2,354.55 MHz was placed the block) and spectrum worth Rs 4 lakh crore in 700 Mhz band found no takers.

The telecom industry has been citing its poor financial health, and falling revenue and profitability to reason that the auctions should be held late next year or early 2019.

But this time the regulator is likely to revise the base price for the 700 Mhz band lower to make it attractive among bidders. Recently, Sharma also said the regulator will take all the views including revision of the 700 MHz price during consultations.  The consultation paper will seek views from the industry stakeholders on comprehensive set of bands that include 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz, 2500 Mhz, 3300-3400 Mhz and 3400-3500 Mhz.