The Indian Telecommunications Regulatory Authority (Trai) has recommended cutting 5G air base prices, showing 40 percent reduction in prices of 700 MHz bands and 36 percent cut in the band’s spectrum frequency of 3300-3670 MHz. This, he said, will attract competitive offers by large telecommunications players such as the idea of airtel, Jio and Vodafone.
Releasing its recommendations on Monday, Trai stated that all spectrum available in existing bands 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and a new spectrum band, 3300-3670 MHz, 3300 -3670 MHz and 24.25-28.5 GHz, will be included in the auction.
“To provide flexibility to telecommunications service providers, the size of a 10 MHz block for the band 3300-3670 MHz and 50 MHz for 24.25-28.5 GHz bands recommended. The spectrum to be assigned in the adjacent way,” said a statement issued by Trai.
Trai further informs that the recommendation of pricing is for the spectrum with a period of 20 years. “The price of the spectrum allocation in the case of 30 years must be equal to 1.5 times the price of the spectrum allocation for 20 years for their respective bands,” he said.
Overall, the reserve price in various bands functions almost 39 percent lower than the recommended last time, said PTI.
Trai said that for the long-term growth and sustainability of the telecommunications sector, embed liquidity and encourage investment, telecommunications service providers must be permitted easy payment options, including partial payments with moratorium flexibility.
The spectrum auction is scheduled to be conducted in 2022, to facilitate the launch of 5G cellular services in 2022-23, by private telecommunications providers. The next generation 5G will deliver ultra high service and spawn new age services and business models.
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