The Department of Telecommunications (DoT) is reportedly of the view that a reduction in base price of 5G airwaves and the 700 MHz band along with a lesser upfront payment will be needed to incentivise telcos to bid for spectrum in the next auction expected to be held in 2022.
In the March 2021 auction, the government managed to sell only 37 per cent of the over 2,300 units of spectrum across seven bands that were put up for auction. Further, the 700 MHz band went unsold for the second time, owing to its high base price.
The DoT is also likely to shortly seek a fresh base price for the 3300 MHz-3600 MHz band earmarked for 5G, the 700 MHz band, and other new bands which can be used for the next-gen technology. Following this, TRAI will need to start a fresh consultation process for arriving at the prices.
According to industry analysts, operators Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) might ask TRAI to reduce the price of the 3,300-3,600 MHz and 700 MHz bands by at least 50 per cent.
They are also likely to seek an increase in the spectrum payment moratorium period beyond two years and cut in the upfront payment for airwaves that will be put up for sale in the next auction.
