The Telecom Regulatory Authority of India (TRAI) has approved the auction of 5G spectrum worth Rs 17,940 crore in the 37-40 GHz band across all 22 telecom circles. This millimetre wave band is crucial for capacity expansion and is particularly suited for high-speed connectivity in densely populated areas.
Spectrum Allocation and Pricing Details
A total of 3,000 MHz of spectrum per circle will be made available in the 37-40 GHz band, with a validity period of 20 years. TRAI has recommended that the Department of Telecommunications (DoT) include this spectrum in the upcoming auctions.
Among the telecom circles, the reserve price for Delhi is the highest at Rs 76 lakh per MHz, followed by Mumbai at Rs 67 lakh per MHz, Maharashtra at Rs 54 lakh per MHz, and Andhra Pradesh at Rs 49 lakh per MHz.
Payment Terms and Auction Timeline
The regulator rejected a proposal by telecom operators for a payment moratorium on the upcoming auctions. Instead, TRAI has maintained the existing payment terms, which include an upfront payment option or payment in 20 annual instalments. Internal discussions at DoT regarding the timeline for conducting the next auctions are ongoing. The schedule will depend on demand assessments from telecom operators.
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Recommendations on Spectrum Bands
Trai’s recommendations followed an August 2023 request from DoT to analyze different spectrum bands and their base prices. While initially excluding the 37-40 GHz and 42.5-43.5 GHz bands, Trai issued a consultation paper in April 2024 covering these frequencies.
The regulator has decided not to include the 42.5-43.5 GHz band in the upcoming auction, citing a lack of device ecosystem support for this range. However, Trai confirmed that the device ecosystem for the 37-40 GHz band (n260) is robust, supported by data from the Global Mobile Suppliers Association. This band has already been auctioned in the United States, with the UK and Canada considering similar auctions.
Participation and Spectrum Cap
Trai has recommended allowing participation from telecom operators, internet service providers, and machine-to-machine service providers under a unified licence. The spectrum cap for the 37-40 GHz band is set at 40% of the total spectrum available for auction. This cap will not be combined with the 26 GHz band for calculation purposes. The auction will proceed with a block size of 100 MHz per telecom circle.
These measures aim to support the growth of high-speed 5G networks in India, promoting technological advancements and connectivity improvements nationwide.
