Finance Ministry Task Force Considers DoT’s 5G Spectrum Price Exorbitant

Finance Ministry Task Force stated that 5G spectrum pricing must achieve the National Digital Communication Policy Goals

Highlights
  • Trai has suggested Rs 492 crore Megahertz Base Price
  • Telecom Operators have to clear Rs 1.35 lakh crore liabilities
  • Bharti Airtel will not take part in 5G spectrum with Trai’s Exorbitant Prices

A task force assembled by Finance Ministry noted that that 5G spectrum pricing set by DoT is too high. Though DoT has fixed the prices of 5G Spectrum as per the norms of Trai, the entire telecom industry is showing their concerns regarding the high pricing of 5G spectrum. Telecom industry is already facing substantial financial distress, and the payment of AGR dues has already burdened telecom operators. Finance Ministry Taskforce stated that 5G spectrum prices must be restructured in a rational way to make it convenient for future generations.

DoT has suggested Rs 492 Crore per Megahertz Base Price

DoT has suggested a base price of Rs 492 crore Megahertz which is exorbitant than base prices set up by other countries for 5G spectrum. Major telecom operators in India are already facing financial distress, and they have unanimously opposed the 5G spectrum pricing suggested by DoT. Telco giant Bharti Airtel has already shown its disinterest in the base price and stated that it would not participate in the 5G Spectrum with Trai’s exorbitant prices. The finance ministry task force also shared a report which revealed the added financial pressure that telecom operators are facing. Nearly Telecom operators have to clear Rs 1.35 lakh crore liabilities in a short period which will hamper their liquidity position. In such case, high 5G spectrum pricing will add pressure on telecom operators. This news is reported by ET Telecom.

5G Spectrum Pricing Must achieve the National Digital Communication Policy Goals

Taskforce assembled by Finance Ministry stated that 5G spectrum pricing must be set in an affordable way so that it will be sustainable in future. Also, it should be convenient for all the users, and the 5G Spectrum structure must resonate with the goals of National Digital Communication Policy. The report also stated that telecom operators must expand network coverage in rural areas as less network coverage is limiting the scope of various digital technologies. Also, telecom operators must focus on optical fibre connections more before launching 5G. Not only this, but the participation of private telecom players must also be robust in the 5G spectrum and all the elements of the auction must be rational to set a pathway for massive demand of 5G in India.

Shrijan loves the process of creating content in various verticals, whether it be words, sounds or videos. He's also inclined towards digital marketing and tech industry developments. The art of creation always intrigues his interest.

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