The Telecom Regulatory Authority of India (TRAI) had asked the Department of Telecommunications (DoT) about the availability of the 5G spectrum for the auctions. The lack of a National Frequency Allocation Plan (NFAP) makes it a little confusing for the regulator to make recommendations. According to an FE report, DoT will submit a response to the queries of TRAI within a week. This will allow the regulator to go ahead with its process of consultations on the matter.
5G Spectrum Required by Multiple Stakeholders
There are multiple stakeholders including satcom players, telecom companies, and broadcasters who are interested in getting their hands on the 5G spectrum. Further, the DoT has also recommended that the 600 MHz spectrum band be included in the 5G spectrum auction along with the airwaves in the 700 MHz, 3.5 GHz, and mmWave spectrum. There will also be 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, and 2300 MHz spectrum bands included in the auction.
TRAI has to recommend a fresh base price for all the concerned spectrum bands. The DoT has prepared the response to the regulator’s queries and TRAI will get it once the telecom secretary approves it. According to the publication’s report, this should happen within a week.
Because the telcos have been given extra time to conduct 5G trials, the spectrum auction is likely going to happen in April - March 2022. A cut in the reserve or base price of the 700 MHz band and other bands is very important to ensure that it is feasible for the telcos to rollout 5G in India.
The higher the cost of the 5G rollout, the more expensive the service will be for the end consumers. It is worth noting that while a huge chunk of capex from telcos will go towards the 5G services rollout, there will also be 4G investments required for the next few years.
