Entire 11,970 MHz of Telecom spectrum worth Rs 2.1 Lakh Crore up for auction
The Government of India (GoI) is reportedly planning to auction the entire 11,970 MHz of spectrum, estimated to be worth Rs 2.1 lakh crore.
The Government of India (GoI) is reportedly planning to auction the entire 11,970 MHz of spectrum, estimated to be worth Rs 2.1 lakh crore for the Indian telecom operators. The interesting fact is that the spectrum is actually 19% cheaper than the last time auction.
Reports indicated that the cost may have been lowered following complaint of Telcos and the industry stakeholders about the expensive spectrum. Thus a 19% cheaper cost would be a welcome move by the government.
TRAI (Telecom Regulatory Authority of India) has recommended auctioning the entire available radiowave spectrum for the telcos. The government has also put a uniform 35% spectrum cap to safeguard competition in the sector. The telecom authority has also proposed a lower entry barrier for new players to promote competition in the industry.
TRAI has also proposed that the spectrum held by companies that are going through the insolvency process should be reclaimed and also added at the spectrum auction for the telcos.
The regulator has also proposed to lower the net worth criteria for new entrants from Rs 100 crore to Rs 50 crore per licensed service area (and from Rs 50 crore to Rs 25 crore for Jammu and Kashmir and the Northeast region). This can potentially encourage new players to enter the sector and provide services.
TRAI released a document on the auction that reads, “The entire available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz frequency bands should be put to auction in the forthcoming auction.”
Meanwhile, the telecom operators is expecting the spectrum cost to go down further as the lack of complete monetization of 5G demotivates them from investing too much in the airwaves in the near future.
