5G waves: blow for telecom operators: the reserve price of 5G waves remains unchanged

In a blow to telecommunications operators, the Cabinet left the reserve price of 5G waves unchanged, according to the notice of invitation to request (NIA) published on Wednesday. Auctions are now set to start at the end of July.

Telcos had asked for a 90% reduction in the on-air reserve price from 2018 levels. Trai, in its April recommendations, had cut prices overall by 39% from August 2018 suggested prices. .

The cabinet, meanwhile, on Tuesday approved the sale of 72,097.85 MHz of spectrum with a validity period of 20 years. The auction will be for spectrum in various bands including the 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 3300 MHz and 26 GHz frequency bands.

A statement issued by the Department of Telecommunications (DoT) on Wednesday said, “The spectrum auction will benefit from the telecommunications sector reforms announced in September 2021.”

The reforms include zero Spectrum Usage Charges (SUC) on acquired spectrum at the next auction, providing significant relief to service providers in terms of the cost of operating telecommunications networks.

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In addition, the requirement to submit a financial bank guarantee equivalent to an annuity has also been removed, the statement said.

On April 11, the Trai had recommended a base price of Rs 317 crore per unit for airwaves in the 3.3-3.67 GHz premium band (C-band), a reduction of 36% from its last recommendation in 2018. It also slashed the recommended price for the coveted 700 MHz spectrum by 40%, to Rs3,297 crore per MHz, in a bid to induce Indian mobile companies to bid aggressively in the upcoming spectrum sale. 5G waves.