Trai lowers price of 5G spectrum

The Telecom Regulatory Authority of India (Trai) on Wednesday suggested pan India base price of Rs 492 crore per megahertz for 5G radiowaves, which is much lower compared to 2016 base price.

The 5G radio waves is touted as the next-generation technology for mobile services with high-speed internet and expected to give a push to Internet of Things (IOT) in the country.

The Trai in its recommendation to the Department of Telecom (DoT) on the base price for auctioning of radio waves, fixed 43% less for the 5G spectrum taking the note that it was unsold in 2016 following high price. The DoT is yet to decide the date for the next round of auction.

The regulator recommended that proposed base price of 5G spectrum in 3300-3600 Mhz band "should be equal to 30% of the reserve price of 1800 MHz band" at about Rs 492 crore per Mhz unpaired spectrum on pan India basis.

Telecom operators bidding in the next round of auctions for the spectrum to provide 5G service have to shell out a minimum of Rs 9,840 crore on a pan-India basis to buy spectrum in 3300-3600 Mhz band as Trai has suggested that it "should be put to auction in the block size of 20 MHz".

The Trai has recommended base price of Rs 3,285 per megahertz for paired spectrum in 1800 Mhz band. For the premium 700 Mhz band, the regulator suggested Rs 6, 568 crore per MHz a decline of almost 50% compared to the reserve price of Rs 11, 485 per MHz set in the auction in 2016-17.

The Trai has suggested a base price of Rs 4,651 crore for paired spectrum in 800 Mhz band covering 19 circles, Rs 1,622 crore per Mhz for 900 Mhz band covering seven circles, Rs 3,399 crore per Mhz of in 2100 Mhz covering 21 circles and Rs 821 crore per Mhz in 2500 Mhz band covering 12 circles.

The regulator has recommended Rs 960 crore per Mhz for unpaired spectrum in 2300 Mhz band on pan-India basis.