The Telecom Regulatory Authority of India (TRAI) will reportedly release a consultation paper on the mechanism for allocating E and V bands spectrum and backhaul carriers to telecom operators.
As per industry sources, TRAI is likely to treat E and V bands separately as they have slightly different characteristics. While the E band is primarily used for 5G backhaul, the use of the V band has not become prevalent so far. Further, a certain quantum in the V band is likely to be delicensed or allotted without auctions for indoor coverage.
The Department of Telecommunications (DoT) had earlier written to TRAI for recommendations for the auction of the E and V bands spectrum. In its reference, DoT said that any delicensed spectrum can be used only for indoor coverage while for outside mobility services and backhaul, companies must buy spectrum through an auction.
Apart from the E and V bands, TRAI will also finalise a new allocation mechanism for backhaul carriers, which have been given administratively to telecom operators so far. At present, frequencies in the 6 GHz, 7 GHz, 13 GHz, 15 GHz, 18 GHz, and 21 GHz bands are used as backhaul spectrum and older telcos including Bharti Airtel and Vodafone Idea Limited have been using the same set of frequencies for a long time. The telcos want the administrative route to continue for backhaul as in case of auction, it may not be guaranteed that they would be allocated the same set of airwaves. However, Reliance Jio does not have the legacy backhaul carriers and has a much higher level of fiberisation of towers. Hence, it wants all types of airwaves to be allocated through auction. If it is decided to auction such airwaves, the telcos will have to pay the market-determined price for using the spectrum.