Update : Spectrum auction for 5G

The Indian telecom regulator, the Telecom Regulatory Authority of India (TRAI) has turned down a request by the Digital Communications Commission (DCC) to reconsider its stance to ensure greater competition and increase participation in the upcoming auctions. The TRAI has stayed put on its own spectrum valuation while telecom industry insiders have concerns over the high 5G spectrum prices.

What has happened?

The telecom industry is mainly voicing its concerns over the high spectrum prices which also include the airwaves used to offer 5G services and a few of them they may sit out of auctions as the high prices make profitmaking very difficult.
Based on their concerns, the DCC had requested the TRAI to go through its plans once in view of the larger social goals of Digital India and Broadband for all.

Why DCC is getting involved?

The DCC had decided to request the TRAI for its request as-

  • The revenue realization and growth in the telecom sector. The revenues in the telecom sector are stagnant as the companies are fighting for market control.
  • The financial health of the sector.
  • Reducing competitiveness from an earlier 8 companies to now only 3.

What happens now?

TRAI has agreed with DoT to increasing the lock-in period for spectrum in 3300-3600 MHz band used for 5G services. The Government plans to hold spectrum auctions in the current financial year.

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