Telecom operators have reportedly asked the government to rationalise spectrum valuation and cut reserve prices to boost participation in future auctions. They proposed that reserve prices be fixed at 50 per cent of spectrum valuation, instead of the current 70-80 per cent, arguing that high pricing has led to unsold inventory in past auctions. Operators said TRAI should not rely only on historical auction prices to determine valuation, particularly when earlier auctions failed to attract bids.
Operators also pressed for easier payment terms to improve the sector’s financial health. Suggestions included extending the spectrum assignment period from the current 20 years to 30-40 years to allow better cost amortisation and long-term certainty. Telcos proposed a six-year moratorium followed by 14 instalments, or even removal of upfront payments, compared with the existing four-year moratorium.
Meanwhile, the industry unanimously rejected concerns about spectrum oversupply despite muted participation in the 2024 auctions. The operators said unsold spectrum reflected pricing and ecosystem issues, not lack of demand, and warned that restricting supply creates artificial scarcity and inflates costs. They called for all available spectrum in existing bands to be auctioned immediately to ensure predictability for network planning.
However, differences emerged over the 6 GHz band. Reliance Jio and Vodafone Idea Limited argued that the entire band is essential for 5G and future 6G services and should be auctioned now to encourage ecosystem development. In contrast, the technology industry opposed auctions and sought full delicensing of the band, citing its global use for Wi-Fi in many countries.
Telcos also opposed any reservation or fragmentation of spectrum for smaller players, maintaining that all spectrum should be auctioned transparently without preferential treatment.
