Telecom Operators Again Plead Trai for Reduction in Spectrum Prices in Upcoming Auction

The Indian telecom operators have been saying that the pricing of the spectrum in the upcoming auctions should be brought down to make the spectrum more affordable. In a latest development, the telecom operators have reiterated their demand for more affordable spectrum prices to the Telecom Regulatory Authority of India (Trai) as per a new ET Telecom report. It is worth noting that Trai has already suggested pricing for the spectrum which are to be put on for sale in the upcoming auctions. The telecom operators have requested the telecom regulator to think upon the spectrum prices for the financial health of the telecom industry.

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Upcoming Auction to be 3.5 Times in Pricing as Compared to Previous Auction

Ravi Gandhi, the chief regulatory officer for Bharti Airtel remarked in an industry event, “…the paying capacity of the operator also should be one of the important criteria while keeping the spectrum pricing.” Gandhi also added that the government should reconsider the spectrum usage charges, license fees and other charges need to be factored in while coming up with spectrum prices. Another charge which the telcos have urged to rethink about, is the charge for unused spectrum which is currently charged by the government.

The comments from the regulatory official of Bharti Airtel came in the run-up to the largest spectrum in the industry which is expected to take place in the industry. In the upcoming auction for 4G and 5G spectrum, the government will be putting 8,293.95 MHz of airwaves for sale at the base price of Rs 5.77 lakh crore. It is worth noting that the base price for the spectrum is 3.5 times of the 2,354 MHz of spectrum which was put for auction in the year of 2016. The base price of the spectrum in the previous auction of 2016 was Rs 5.63 lakh crore.