5G spectrum auction: Trai working to submit recommendations by March

The Telecom Regulatory Authority of India (Trai) is working to give its recommendations on the upcoming 5G spectrum auction by March as desired by the government. However, sources said, the regulator feels that the DoT has made its task tougher by delaying providing additional information sought by Trai because of which a lot of calculations need to be revisited.

Despite the limitations, Trai is trying its best to submit the recommendations within the stipulated time frame, so that the government can go ahead with the auctions around May, the sources added.

As reported earlier, the Department of Telecommunications (DoT) has written to Trai, requesting that the recommendations on the reserve price of spectrum for 5G auctions be submitted before March, as the Prime Minister’s Office (PMO) has expressed its desire for the initial launch of 5G by August 15.

The DoT has also informed Trai about availability of additional spectrum in 800 MHz, 900 MHz and 1800 MHz bands that can be incorporated for the upcoming auction.

What makes Trai’s task difficult is that there’s a lot of difference of opinion among telecom operators on a host of issues relating to spectrum cap, reserving spectrum for satellite, bundling of spectrum, etc. The regulator is of the view that there can’t be a consensus on certain issues and its recommendations would reflect this. In such areas, the government will have to take the final call.

It is expected that Trai will likely reduce the reserve price for 5G spectrum by 30-50%, against the demand of a 90% cut. Further, the spectrum cap may not be changed because of fears of monopolies emerging. Currently, the overall spectrum cap stands at 35%. Bharti Airtel and Vodafone Idea want the current cap to stay, but Reliance Jio has been demanding that it be increased to 50%.

Some of the other issues such as whether to auction the entire spectrum or only a portion may be left for the DoT to decide. The issue of satellite spectrum in the millimetre band (27.5 GHz-28.5 GHz) may also be left for DoT.

Trai is also not likely to take into account the demand for bundling of the E-band spectrum with 5G spectrum as sought by Bharti Airtel and Vodafone Idea as the issue was not part of the consultation paper. The DoT is expected to take a final call on the matter.

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