The Telecom Regulatory Authority of India (Trai) has rejected the Department of Telecommunications’ (DoT) request for fresh recommendations on spectrum pricing. In a letter to the DoT, Trai emphasized that it will not provide any new recommendations on pricing or other modalities for any spectrum band, except for the new 37GHz band that will debut in the upcoming auction. Instead, Trai has urged the DoT to use the recommendations provided last year for bands ranging from 600 MHz to 26 GHz. It has also stated that the DoT should proceed with the auction of the existing bands without waiting for Trai’s recommendations on the 37GHz band.
This decision comes after the DoT had requested Trai to furnish recommendations on reserve price, band plan, block size, quantum of spectrum to be auctioned, and other conditions for the sale of airwaves in bands ranging from 600 MHz to 26 GHz. Although frequencies in the 37 GHz band were added for the upcoming sale, all other spectrum bands were put up for auction last year. However, a significant amount of spectrum remained unsold, resulting in the decision to include the unsold spectrum along with the 37 GHz band in the upcoming auction.
Trai’s letter to the DoT, dated September 1, 2022, stated, “All available spectrum in the existing bands ranging from 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz in the referred LSAs (licensed service areas) may be put to auction with the same band plan, block size, and associated conditions.” Trai’s earlier recommendations for 5G auctions had taken into account the conduct of annual auctions. As a result, Trai had recommended that a fresh spectrum valuation exercise be conducted once every three years for existing bands.
The decision by Trai to not provide fresh recommendations is likely to expedite the auction process for the existing bands. However, it remains to be seen how this decision will impact the overall auction and pricing strategies of the DoT and the telecom industry as a whole.
