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5G Internet By Year-End? Trai Recommendations Set The Ball Rolling

5G Internet By Year-End? Trai Recommendations Set The Ball Rolling

With the Telecom Regulatory Authority of India (Trai) recently making recommendations on spectrum pricing and other issues, 5G auctions are now expected to take place within 2-3 months and services may be rolled out across the country by the end of this year. In this year’s 2022 budget, the government also said the auction would take place this year.

Trai . Recommendations

The telecoms regulator on Monday recommended a 39 per cent reduction in the reserve or land price for the sale of spectrum for mobile services, including the 5G offer, and put up a massive Rs 7.5 crore auction scheme. The recommendations were expected to come earlier by the end of March, but were later postponed for a few days until early April.

For the main 5G frequency of 3300-3670MHz, the pan-India standby rate adds up to Rs 317 crore per MHz, which is 35 per cent less than the Rs 492 crore/MHz suggested by Trai last time. In a 20-year scenario, the ground rate in the 700MHz band was reduced by 40 per cent to around Rs 3,927 crore per MHz for the pan-India spectrum while the same rate in the 800MHz band was reduced by 22 per cent to around Rs.

The regulator lowered reserve prices as more than 60 percent of the spectrum was auctioned in 2016 and March 2021 remained unsold.

In November 2021, Trai released a detailed advisory paper discussing modalities for spectrum auctions, including high-speed 5G, across multiple bands, including pricing, quantum and other terms.

Gangs that will be auctioned off

The auction recommended Trai communications regulator for airwaves in all current bands – 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and new slots of 600 MHz, 3300-3670 MHz and 24.25 – 28.5 GHz. Much of the spectrum has remained unsold in previous auctions.

“Enterprises may acquire spectrum by leasing from telecom service providers and establish their own isolated captive wireless network…the organization may obtain spectrum directly from the government and establish its own private wireless isolated network,” TRAI said.

When is the auction likely?

During the 2022 Budget Address, Union Finance Minister Nirmala Sitharaman said the 5G telecom spectrum auction will be held in 2022 and the network will be launched in the current 2022-23 financial year. However, after Trai has made its recommendations, a 5G auction will likely take place in May and June so that initial 5G services can begin in the country on Independence Day, ET reports.

The DoT had earlier asked TRAI to speed up the application process so that 5G services could be started in the country on Independence Day, i.e. August 15, 2022.

Recently, Communications Minister Ashwini Vaishnau also said that the 5G spectrum auction will be held on schedule and within the given schedule.

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