Telecom Spectrum Worth Rs 2.1 Lakh Crore to be Available for Telcos

The Indian telecom operators are likely to get spectrum worth Rs 2.1 lakh crore in the next spectrum auction. The Government of India (GoI) will likely avail the entire 11,970 MHz of spectrum for the telcos. This is estimated to be worth Rs 2.1 lakh crore. This spectrum is actually 19% cheaper than the last time. Telcos and the industry stakeholders have often complained that the spectrum offered by the government is expensive. Thus a 19% cheaper cost would be a welcome move by the government.

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TRAI (Telecom Regulatory Authority of India) has recommended auctioning the entire available radiowave spectrum for the telcos. Also, this time, there’s a uniform 35% spectrum cap to safeguard competition in the sector. The telecom authority has also proposed a lower entry barrier for new players to promote competition in the industry.

TRAI has also proposed that the spectrum held by companies that are going through the insolvency process should be reclaimed and also availed at the spectrum auction for the telcos. Also, the net worth criteria for new entrants has been proposed to be halved from Rs 100 crore to Rs 50 crore per licensed service area (and from Rs 50 crore to Rs 25 crore for Jammu and Kashmir and the Northeast region). This can potentially encourage new players to enter the sector and provide services.

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