TRAI is lowering the basic price of 3.3-3.67 Ghz bands by approximately 36% and lowering the rate of the highly sought-after 700 Mhz spectrum by 40% in order to encourage India’s mobile phone operators to bid aggressively for the upcoming 5G airwaves auction.
Previously, the 3.3-3.67 Ghz band, also known as mid-band 5G spectrum, cost Rs 492 crore per unit, which has now been cut to Rs 317 crore per unit, while the 700 MHz band has been reduced to Rs 3,927 crore.
Furthermore, TRAI fixed tariffs for new bands in the 600 MHz and millimetre wave (mmWave)–24.25-28.5 GHz–bands at Rs3.927 crore per unit and Rs6.99 lakh per MHz, respectively. Additionally, TRAI proposed new beginning costs for the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands, all of which can be utilised for 5G in the future.
According to TRAI, this action is for the long-term growth and sustainability of the telecom sector, infusing cash and stimulating investment. The spectrum sale, which is likely to happen in 45-60 days, is expected to be the largest ever, with over 104,000 MHz of airwaves valued at less than Rs 2 lakh crore up for grabs.
Regarding this, TRAI said,
DoT (Department of Telecommunications) has emphasised the need to strike a balance between generating revenue and the sustainability of the telecom sector in a way that TSPs (telecom service providers) are in good health with sufficient capacities to make regular and substantial capital expenditure for transitioning to 5G technology.