DoT likely to forward 5G spectrum auction proposal to Cabinet next week

The telecoms ministry is likely to forward the 5G spectrum auction proposal to the Union cabinet for final approval next week, an official source said on Tuesday.

The Digital Communications Commission has finalized the base price suggested by the Telecom Regulatory Authority of India, said the source, who did not wish to be named.

“The DCC has confirmed its view. It is not a decision-making body. It will give a recommendation to Cabinet for final approval of the auction plan. There is no change in the base price recommended by Trai,” the official said.

Telecom operators objected to the base price recommended by regulator Trai. The DCC has decided not to auction the frequency range of spectrum between 27.5 and 28.5 gigahertz and leave it to satellite services.

The Telecommunications Regulatory Authority of India (Trai) had recommended a base price for this frequency range and suggested that it could be used for both mobile and satellite services.

The regulator, in its response to the DoT last week, left it to the government to decide whether it wanted to auction 27.5-28.5 GHz.

The DCC also approved the Trai recommendation to allow for the establishment of a private wireless network or the 5G network for captive use. Trai has proposed a mega auction plan valued at over Rs 7.5 lakh crore at the base price across multiple bands for radio waves allocated over 30 years.

Overall, the Telecommunications Regulatory Authority of India (TRAI) has recommended a reduction of around 39% in the reserve price or floor price for the sale of spectrum for mobile services, including the latest 5G offering, as it sought to match revenue expectations with industry payout. ability.

The watchdog has recommended a mega auction plan of over Rs 7.5 lakh crore for over 1 lakh megahertz of spectrum in case the government allocates it for a period of 30 years.

In the case of 20 years, the total value of the proposed spectrum auction will amount to approximately Rs 5.07 lakh crore at the reserve price, as per the calculation on the back of the envelope.

With large swaths of spectrum remaining unsold from the last two auctions, Trai recommended the government sell off air in all existing bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and new slots of 600 MHz, 3300-3670 MHz and 24.25-28.5 GHz.

He suggested a lower reserve price for all bands, compared to the last recommended prices in 2018.

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