DCC approves TRAI’s recommendation for 5G spectrum auction; DoT seeking approval

The Digital Communications Commission on Tuesday approved the base price of 5G spectrum proposed by the Telecom Regulatory Authority of India (TRAI). The decision was taken at a meeting held today. The telecom department will now approach the Union Cabinet for final approval.

Although the 5G spectrum reserve price will not change, TRAI’s recommendations on captive networks are accepted.

“The DCC has reaffirmed its position. It is not a decision-making body. It will recommend to the Cabinet for final approval of the auction plan. There is no change in the base price recommended by TRAI,” the official said.

Telecom companies have rejected TRAI’s proposed base pricing. DCC chose to drop the spectrum frequency range for satellite services between 27.5-28.5 GHz instead of auction.

The Telecom Regulatory Authority of India (TRAI) has proposed a base tariff for this frequency range, suggesting that it can be used for both mobile and satellite services.

The regulator last week left it up to the government to decide whether to auction 27.5-28.5 GHz in response to the DoT.

DCC also approved TRAI’s request that a personal wireless or a 5G network be set up for captive use. TRAI has proposed a massive auction of more than Rs 7.5 lakh crore at the base price for the radiowave allotted over a period of 30 years.

The Telecom Regulatory Authority of India (TRAI) has recommended a 39% reduction in reserve or floor prices for the sale of spectrum for mobile services, including the latest 5G offer, to align revenue estimates with industry financing.

Watchdog has recommended a mega auction plan of more than Rs 7.5 lakh crore for 1 lakh MHz spectrum if the government allocates it for 30 years.

In 20 years, the total value of the proposed spectrum auction will stand at a reserve price of around Rs 5.07 lakh crore, according to the calculation on the back of the envelope.

In the last two auctions, the spectrum remained largely unsold. It has recommended to the government to sell airwaves in all its existing bands. 600 MHz, 3300-3670 MHz and 24.25-28.5 GHz.

This suggests a lower reserve price for all bands than the last proposed price in 2018.

(With PTI’s input)

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