The Telecom Regulatory Authority of India (Trai) has given its go-ahead for the auction of Rs 17,940-crore new 5G spectrum in the 37-40 GHz band in all the 22 circles. The band, which is in the millimetre wave, is crucial for capacity additions by telecom operators and is ideal for high-density areas where high-speed connectivity is required.
A total of 3,000 MHz spectrum per circle is available in the 37-40 GHz band. Trai has recommended that the department of telecommunications (DoT) bring the spectrum in the forthcoming auctions and provide it to telecom operators for a validity of 20 years.
Among the circles, the reserve price for the Delhi circle in the spectrum band has been set the maximum at Rs 76 lakh per MHz, followed by the Mumbai circle at Rs 67 lakh per MHz, the Maharashtra circle at Rs 54 lakh per MHz, and the Andhra Pradesh circle at Rs 49 lakh per MHz.
Rejecting the telecom operators’ request for a 5-6 year interest-free payment gap or moratorium on the spectrum bought in the upcoming auctions, the regulator kept the status quo on the existing payment terms – upfront payment option and payment in 20 equal annual instalments.
Officials said the internal discussions on conducting the next spectrum auctions this year are yet to be concluded. Based on demand assessment from telcos, DoT will go ahead with the next spectrum auctions.
The recommendations from Trai on the reserve price for the 37-40 GHz band came after DoT in August 2023 asked the former to carry out an analysis of different spectrum bands and their base price. Trai, however, at that time had skipped the bands in 37-40 GHz and 42.5-43.5 GHz bands.
In April 2024, Trai had issued a consultation paper on auction of frequency spectrum in 37-37.5 GHz, 37.5-40 GHz, and 42.5-43.5 GHz bands for telecom operators.
“Owing to the non-availability of the device ecosystem in 42.5-43.5 GHz frequency range, it will be prudent that the frequency range 42.5-43.5 GHz is not put to auction in the forthcoming spectrum auction,” Trai said in its recommendations.
The regulator asked DoT to send a separate reference seeking its recommendations for 42.5-43.5 GHz frequency range for telecom operators, at an appropriate time.
During the consultation process, some stakeholders also expressed concerns about unavailability of the device ecosystem in the 37-40 GHz bands as well.
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