As per the most recent update available on the 5G launch in India, the 5G spectrum auctions are slated to happen in 2022 with the rollout of the 5G mobile services scheduled for 2022-23. Telecom Minister Ashwini Vaishnaw also recently confirmed that the 5G spectrum auction will take place as per schedule and within the stipulated timeline.
The latest report on the 5G launch in the country suggests that the Telecom Regulatory Authority of India (TRAI) has decided to lower the basic prices for some 5G spectrums. Read on to know more about the price cuts introduced for the 5G spectrums to be sold in the coming days.
TRAI Reduces Prices For Some 5G Spectrums
The 5G spectrum auctions are expected to happen in May in the country. With the spectrum auction nearing, all three private telecom operators—Bharati Airtel, Vodafone Idea Limited, and Reliance Jio have been urging the government to cut the base price of 5G spectrums. According to the latest reports, TRAI has finally submitted its 436-page recommendations on “Auction of spectrum in frequency bands identified for (International Mobile Telecommunications) IMT/5G” with reduced prices for some important 5G spectrums.
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TRAI has decided to lower the basic price of 3.3-3.67 GHz bands by approximately 36 percent and lower the rate of the highly sought-after 700 MHz spectrum by 40 percent. Previously, the 3.3-3.67 GHz band, also known as mid-band 5G spectrum, cost ₹492 crore per unit. It has now been cut to ₹317 crore per unit, while the 700 MHz band has been reduced to ₹3,927 crore.
Furthermore, TRAI has fixed tariffs for new bands in the 600 MHz and millimetre wave (mmWave)–24.25-28.5 GHz bands at ₹3.927 crore per unit and ₹6.99 lakh per MHz, respectively. Additionally, the telecom regulatory authority proposed new starting costs for the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands, all of which can be employed for 5G in the future.
DoT (Department of Telecommunications) has emphasised the need to strike a balance between generating revenue and the sustainability of the telecom sector in a way that TSPs (telecom service providers) are in good health with sufficient capacities to make regular and substantial capital expenditure for transitioning to 5G technology.TRAI
According to TRAI, the move is directed towards the long-term growth and sustainability of the telecom sector, infusing cash, and stimulating investment. Notably, the upcoming 5G spectrum sale is expected to be the largest ever, with over 104,000 MHz of airwaves valued at less than ₹2 lakh crore. The spectrum sale is expected to take place in 45-60 days in the country.
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