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TRAI Recommends Price Cut in 5G Spectrum Price

May 01,2022
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According to an official, decreasing the base price of 5G spectrum is the responsibility of the cabinet, not the DoT.

The Department of Telecommunications (DoT) is expected to accept Trai's recommendation on 5G spectrum pricing and will not cut the reserve price further as requested by telecom service providers.

According to an official, decreasing the base price of 5G spectrum is the responsibility of the cabinet, not the DoT. "I don't believe the Department of Telecommunications will entertain telecom operators' request to further reduce the basic pricing." It is expected to accept the Trai's pricing recommendation. The bill will then be sent to the cabinet for final approval. It is up to them whether or not to cut it," stated the official.
Trai issued its proposals for 5G spectrum auctions on April 11, recommending that DoT auction airwaves in all existing bands — 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz — as well as additional slots of 600 MHz, 3300-3670 MHz, and 24.25-28.5 GHz. It also proposed lowering the starting price of 5G spectrum by 40%.

The industry has expressed its dissatisfaction with Trai's pricing proposals. According to them, the rates are still the highest in the world. The Cellular Operator Association of India, which represents Jio, Vodafone Idea, and Airtel, stated that Trai had proposed a 35-40% price decrease versus their demand for a 90% price cut. The government intends to launch the services on August 15, 2022.