Trai Refuses to Budge on Spectrum Price Recommendations, Puts Responsibility of Auction Success on DoT

In a new turn of events related to the auction of the 4G and 5G airwaves which is to happen later this year, the Telecom Regulatory Authority of India (Trai) has refused to budge on the recommended prices for the spectrum. The telecom regulator has also said to the department of telecommunications (DoT) that no one can guarantee the sale of all the airwaves which are put up for auction, as per an ET Telecom report. To recall, in the last auction for spectrum the DoT did not see any buyers for some of the spectrum owing to high prices, and this time around DoT asked the telecom regulator consider reducing the reserve price of spectrum looking at the financial health of the industry.

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Telcos Disappointed With No Change in Spectrum Prices

In its remark to DoT, the telecom regulator has also said that it is the collective responsibility of the DoT and the marketing efforts of the department as well, which will make the spectrum auction a success. The department had asked the sector regulator to once retake a look at the overall auction structure besides urging it to change and lower the reserve prices of the spectrum for the upcoming auction. DoT was urging the regulator to make changes such that it would allow the department to avail maximum spectrum for sale for government revenue.

The industry watchdog, in its response to DoT, said on Monday, “The authority reiterates the spectrum valuation and reserve prices as contained in its recommendations dated August 1, 2018.” The regulator also added that it had already taken a look at the necessary development before making recommendations for the prices back in August 2018. It further added to its statement, “The Government’s own marketing efforts will also have an impact on participation in auction. Therefore, no guarantee can be given about sale of all the spectrum put to auction, as it depends on various factors”.