5G lined up for next spectrum auction, Trai to start process

The Telecom Regulatory Authority of India (Trai) on Monday initiated the process of consultation for the next round of spectrum auction which includes for the first time 275 megahertz of two new bands meant for 5G mobile services.

The other seven bands include 60 per cent of unsold radiowaves of the last auction. In addition to providing simply faster speeds, 5G (fifth generation) networks are expected to meet new uses, such as the Internet of Things (internet connected devices), as well as broadcast-like services and lifeline communication in times of natural disaster.

While the Department of Telecom (DoT) has proposed to hold the spectrum auction in 2017, Trai has sought opinion on when the next round of auction should be held and whether it should done in a phased manner.

The government is planning to auction the right to use of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3400 MHz and 3400-3600 MHz bands in the next auction to be held in 2017, Trai said in the consultation paper.

DoT has requested the Authority to provide its recommendations on applicable reserve price, quantum of spectrum to be auctioned and associated conditions for auction of spectrum in these bands for all service areas.

During the last auction, the government had put airwaves worth Rs 5.66 lakh crore for sale. In the five-day auction, seven telecom companies made commitments of Rs 65,789 crore for buying 964.80 MHz of spectrum in various frequency bands.

At the end of the auction, nearly 60 per cent of the spectrum remained unsold (in all, 2,354.55 MHz was placed on the block) and spectrum worth Rs 4 lakh crore in 700 Mhz band found no takers as cashstrapped telcos found the reserve price too high.

DoT as indicated that about Rs 3.08 lakh crore is due over the next 11 years on account of deferred payment plans opted by telcos for the purchase of spectrum rights in the recent auctions, Trai said. The last date for comments on the Trai paper is September 25 while that for counter-comments has been fixed at October 3, 2017.