Telecom Regulator Clears Rs 18,000-Crore Spectrum For Auction
The Telecom Regulatory Authority of India has approved the auction of spectrum in the 37-40 GHz band for the upcoming spectrum auctions. 3,000 MHz of spectrum is available in each of the identified 22 circles. This brings the total cost of spectrum that is open for auction to about Rs 17,940 crore.
The telecom regulator has suggested that the spectrum be put up for auction by the Department of Telecommunications and made available to telecom operators for a 20-year period.
While recommending the auction of spectrum in the 37-40 GHz band, the TRAI also recommended against auctioning spectrum in the 42.5-43.5 GHz band.
“Owing to the non-availability of the device ecosystem in 42.5-43.5 GHz frequency range, it will be prudent that the frequency range 42.5-43.5 GHz is not put to auction in the forthcoming spectrum auction,” it said.
In addition, TRAI has also stated that the spectrum cap for the 37-40 GHz frequency band should be kept as 40% of the total spectrum put to auction. A spectrum cap is the maximum quantity of spectrum that a service provider is permitted to own in a specific frequency band or area.
The TRAI's suggestions come after the Department of Telecommunications sought the regulator's views on whether these bands should be put to auction for the telecom service providers.
The recommended reserve price per MHz is highest for the Delhi circle at Rs 76 lakh/MHz, followed by Mumbai at Rs 67 lakh/MHz. The lowest reserve price stands at Rs 3 lakh/MHz for the Jammu and Kashmir and the North East circles.
The availability of frequency spectrum in the 37-40 GHz range to telecom service providers will enable setting up of high-capacity, low-latency communication networks for advanced use cases.
TRAI has recommended that in addition to the access service providers, internet service providers and machine-to-machine service providers should also be permitted to participate in the auction.
For payment purposes, the TRAI has said that telecom players will have the option to pay for the spectrum upfront or in 20 equal annual instalments.
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