The auction is expected to be India’s largest so far, with 8,293.95 MHz of airwaves at an estimated total base price of Rs 5.77 lakh crore expected to go under the hammer.
With the new government taking charge, the Department of Telecommunications (DoT) may auction 4G and 5G spectrum as early as September-October, likely at prices recommended by the regulator.
Telcos are ready for the next round of spectrum sale, a senior government official said to Economic Times on conditions of anonymity, discounting views that the base prices recommended by the Telecom Regulatory Authority of India for some bands that support 5G are too high to attract bids.
The committee (looking into the regulator’s recommendations) has agreed that all available spectrum will have to be put up for auction, which we will take up to the DCC (Digital Communications Commission) on June 13, said the official.
Largest auction so far
The auction is expected to be India’s largest so far, with 8,293.95 MHz of airwaves at an estimated total base price of Rs 5.77 lakh crore expected to go under the hammer. That’s 3.5 times the 2,354 MHz of spectrum offered at the previous auction in 2016, for which the total base price was Rs 5.63 lakh crore.
The news daily further stated that telecom companies have said the prices suggested by Trai are unsustainable and too high. Pointing to low base prices set by countries such as South Korea, on a per MHz basis for 5G airwaves, they say India’s pricing is seven times higher.
Intense competition in the sector since the entry of Jio in 2016 has weakened the balance sheets of telcos, eroded revenue and earnings and led to consolidation.
