New Delhi, Feb 24 The Telecom Regulatory Authority of India (TRAI) has recommended a full spectrum auction while proposing lower entry barriers for new players and a uniform 35% spectrum cap to promote competition in the telecom sector.
While TRAI has not officially disclosed the combined base price for the entire spectrum, industry estimates suggest that if all available spectrum (excluding 600 MHz) is sold, it could fetch nearly ₹81,000 crore at the reserve price.
TRAI has also proposed halving the net worth criteria for new entrants from ₹100 crore to ₹50 crore per licensed service area (and from ₹50 crore to ₹25 crore for Jammu and Kashmir and the Northeast) to encourage greater participation.
TRAI recommends that all available spectrum across nine frequency bands should be put up for auction.
While the reserve or base price is lower than previous auctions for most Licensed Shared Access (LSA) and band combinations, in some cases, it is higher than previous sales.
Industry sources say the base price for the Jammu & Kashmir and North East circles has been lowered compared to the previous auction. They also note that, in line with regulations, the reserve price for bands that were not previously sold has been fixed at 60% of the last discovered price.
TRAI's recommendations cover all aspects of spectrum auctions, including the reserve price, band plan, block size, and associated conditions for spectrum bids. It suggests that the Department of Telecommunications (DoT) should immediately reclaim spectrum held by telecom companies undergoing insolvency and include this spectrum in the upcoming auction.
The spectrum in the identified frequency bands for IMT (Indian Mobile Technology) should be auctioned on a Telecom Circle/Metro Area basis with a validity period of 20 years. For participation in the forthcoming spectrum auction, the eligibility conditions as prescribed in the Notice Inviting Application 2024 or the 2024 bid document should be met for all frequency bands, according to the regulator.
A uniform 35% spectrum cap has been recommended across low, mid, and high-frequency bands, including 600 MHz, sub-1 GHz bands, 1800-2500 MHz bands, 3300 MHz, 26 GHz, and 37-40 GHz, without requiring operators exceeding the cap to surrender existing holdings.
"All available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz frequency bands should be put up for auction in the upcoming auction," TRAI said.
The rollout obligations for the existing frequency bands, namely, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz, should be the same as those prescribed in the Notice Inviting Applications (NIA) 2024.
To incentivize the 600 MHz band, the regulator has suggested a longer validity of 24 years (instead of 20), a four-year moratorium on payments, and a four-year delay in rollout obligations.
"While the spectrum charge may be levied for a period of 20 years, the validity period of the spectrum should be increased by four years, that is, the usual 20 years plus 4 years," it suggested.
The rollout obligations for the spectrum in the 600 MHz band should be the same as those applicable to other sub-1 GHz bands. However, this should be delayed by four years, meaning no rollout obligations for the initial four years, and the applicable rollout obligations should begin thereafter.
In addition to the upfront payment option, an additional payment option should be made available for the spectrum in the 600 MHz band, it said, outlining the payment plan with a moratorium.
The upper 6 GHz band (6425-7125 MHz) is to be reserved for IMT (mobile services), but will not be auctioned yet; instead, it will undergo technical trials to ensure no interference with satellite stations.
"The available frequency ranges in the 6 GHz (upper) band, viz. 6425-6725 MHz and 7025-7125 MHz should not be put up for auction in the forthcoming auction. The issue of auctioning the spectrum in the 6 GHz (upper) band should be re-examined after considering the outcome of WRC-27," TRAI said.
The regulator says the telecom department may carry out a plan (involving all TSPs) to conduct trials around all 34 locations where satellite uplink stations are located in the relevant frequencies (in-band and adjacent frequencies) to determine the requirement of the keepout distance of IMT base stations from satellite uplink stations.
"The outcome of the trials may also be shared with TRAI," the regulator said.
To bridge the digital divide, the regulator has proposed a novel "coverage-for-discount" scheme that allows successful bidders to offset up to 10% of their spectrum auction costs by expanding service into "dead zones".
Under this plan, telecom operators can opt for a price reduction in exchange for deploying new 4G or 5G base stations in government-identified "coverage holes" within one year.
To ensure these remote areas benefit from maximum connectivity, TRAI has mandated that any towers built under this incentive must be shared with competing telcos at a fair price, ensuring that residents in previously unserved regions gain access to multiple network providers.
Outlining measures to strengthen competition, TRAI proposed reconsideration of a separate wholesale Access Network Provider authorisation, expedited introduction of new infrastructure-related licences, and setting aside certain TDD (Time Division Duplex) spectrum for ISPs, M2M providers and captive networks.
A fresh valuation exercise for spectrum has been proposed every three years, with indexed auction-determined prices to guide interim auctions.
These recommendations pave the way for the next major spectrum sale, which is critical for expanding 5G networks and deepening digital connectivity across India.
