The pricing of 5G airwaves set by the Department of Telecommunications (DoT) has been opposed by the telecom operators since the beginning. All the major telcos operating in India have shown their concern around the exorbitant pricing of the available spectrum. Since 5G is on the cliff, the Department of Telecommunications is planning to hold 5G auctions by seeking a revised base price from the telco regulator for the 3300-3750 MHz along with floor prices for other spectrum bands to support the 5G technology. As reported by ET Telecom, the upcoming 5G airwaves auction might happen next year, and it will give the government upfront payment in the current fiscal year ending on March 31, 2022.
TRAI Set Rs 492 Crore/Unit Price Base Price in 2018
Back in 2018, TRAI set Rs 492 crore/unit base price for the 3300-3750 Mhz band. The base price was highly exorbitant to the telecom operators. Now the telecom operators are expecting lower starting rates from the regulator for the development of next-generation networks. Not only this but, the telco also wishes for additional quantities of spectrum across more 5G bands. The telecom regulator will be eyed upon for the base price for the spectrum available with DoT, including the airwaves in the 5G band of 3300-3750 Mhz band. Apart from this, DoT will also seek base prices for the 600 Mhz and 700 Mhz bands, popularly known as sub-GHz bands and 2425 Mhz-2850 Mhz, known as millimetre waves.
5G Services Will be Costly in India Without 600 Mhz Bands
For the first time, the super-efficient 600 Mhz 700 Mhz bands will be on sale. Even though the 700 Mhz bands were offered to telcos, it was unsold because of its high floor price. Since the spectrum band went unsold, the regulator might lower the price to make it viable for the telcos. The renowned telecom operators Reliance Jio, Bharti Airtel and Reliance Jio has been asking the government to auction the effective 600 Mhz bands, which will make 5G services affordable for consumers in India. As per a DoT official, some additional airwaves are available in the 3400 Mhz and the 3425 Mhz. Earlier the government was rolling out 275 Mhz of 5G spectrum for sale. However, the quantity will now be increased to 300 Mhz.
