According to industry sources, the Department of telecommunications (DoT) is considering for a 20-year validity for spectrum to be put on the block in the upcoming auctions. Also, the DoT is reportedly going ahead with Telecom Regulatory Authority of India’s (TRAI’s) recommended reserve prices to the Cabinet, which will ultimately take a call on these crucial issues related to 5G spectrum auctions.
Meanwhile, TRAI had mentioned that detailed studies would be done in order to assess the demand and market for captive networks. However, conducting such studies would require more time and could lead to delay in approval.
Besides, TRAI itself has not stated any suggestions on modalities or rates for any such an administrative allocation. The final decision, however, on all of these matters will be taken by the Cabinet. According to the sources, the DoT is in favour of 20-year validity for spectrum put for auction, as the regulator had worked out its calculations for reserve price on a 20-year basis.
The mega auction was initially expected to be held in June 2022, but those timelines are now likely to spill over given that the Cabinet is yet to approve the modalities of the 5G spectrum auction.
