Trai has given recommendations for the mega spectrum auction process for 5G technology. Reserve prices of 700 MHz band have been cut by 40 per cent.
Telecom regulator Trai started the mega spectrum auction to push 5G technology on Wednesday. The auction also included a discounted re-bidding of 700 MHz band after it got no sale in 2016 sale process.
The prices of 700 MHz band has been cut by over 40 per cent as the regulator looks at attracting participation by companies in the band.
The call for auction comes at a time when telecom industry is facing financial crunch which is limiting the companies to participate in the fresh airwaves purchases. The auction will take place after one year as the recommendation by Trai has to be approved by the government.
Vodafone, Idea and Airtel are facing heavy losses after the launch of rival company Reliance Jio in September 2016, although, Vodafone and Idea cellular’s merging would give a boost to their spectrum coverage while limiting the need for new purchases.
Trai focused on the new technology of 5G business recommending the 3300-3600 MHz band for 5G spectrum. It also gave recommendation for spectrum sale in 700 Mhz, 800 Mhz, 900 Mhz and 1800 Mhz bands.
For the 700 MHz band, Trai has said that its “reserve price… should be equal to 2 times of reserve prize of 1800 MHz spectrum band resulting in about 43% reduction in the price of this band to Rs 6,568 crore per MHz.”
