TRAI Pushes Major Spectrum Auction with New Rules for Telecom Sector

The Telecom Regulatory Authority of India (TRAI) has released comprehensive recommendations for the forthcoming auction of radio frequency spectrum across multiple bands. It advises the Department of Telecommunications (DoT) to reclaim spectrum from telecom service providers undergoing insolvency and include it in the auction. Key proposals include reducing financial entry barriers for new players and maintaining specific spectrum caps to ensure competitive balance. The recommendations also emphasize the need for contiguous spectrum assignment and timely post-auction harmonization to improve network efficiency.

Key Points: TRAI Releases Key Recommendations for Upcoming Spectrum Auction

  • Auction all available IMT spectrum bands
  • Reduce net-worth requirements for new entrants
  • Set 35% spectrum caps in key bands
  • Reclaim spectrum from insolvent telcos
3 min read

TRAI releases recommendations for auction of radio frequency spectrum

TRAI recommends auctioning all available spectrum bands, reducing net-worth requirements, and setting new spectrum caps to boost telecom services.

"DoT should immediately initiate action for taking back the spectrum held with the telecom service providers... and such spectrum should be put to auction - TRAI recommendations"

New Delhi, Feb 24

The Telecom Regulatory Authority of India on Tuesday released recommendations on the auction of radio frequency spectrum in the frequency bands identified for International Mobile Telecommunications.

These recommendations are based on the comments received from stakeholders during the consultation process, and further analysis.

According to them, entire available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz frequency bands "should be put to auction in the forthcoming auction".

"DoT should immediately initiate action for taking back the spectrum held with the telecom service providers, which are engaged in corporate insolvency resolution process under Insolvency and Bankruptcy Code, 2016, and such spectrum should be put to auction in the forthcoming spectrum auction," according to the TRAI recommendations.

The spectrum in the frequency bands identified for IMT should be auctioned on Telecom Circle/ Metro Area basis with a validity period of 20 years. Simultaneous Multiple Round Auction (SMRA)-based spectrum auction should be continued.

"The net-worth requirement should be reduced from Rs 100 crore per Licensed Service Area to Rs 50 crore per Licensed Service Area (for Jammu & Kashmir and North East Licensed Service Areas from Rs 50 crore to Rs 25 crore each) for new entrants in the forthcoming auction of IMT spectrum," said the recommendations.

The telecoms service providers (TSPs) should be assigned spectrum in a contiguous manner and DoT should carry out harmonization exercise immediately after conducting the auction, and such exercise should be completed "within a time frame of not more than six months from the date of conclusion of the auction".

Also, band plans already adopted for the existing frequency bands, viz. 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands in India, should be continued in the forthcoming auction.

Moreover, a spectrum cap of 35 per cent on the total spectrum available for access services in the 600 MHz band (rounded off considering the block size in the 600 MHz band) has been recommended.

Also, a spectrum cap of 35 per cent on the combined spectrum available for access services (including the spectrum assigned to private TSPs, and the spectrum assigned to/ reserved for PSU operators - for providing access services) in the 700 MHz, 800 MHz and 900 MHz bands has been recommended.

"The following scheme should be launched so that access service providers are incentivized to expand their mobile network coverage in the areas which have no mobile network coverage and are not covered under the schemes of Universal Service Obligation Fund (USOF) -- renamed as Digital Bharat Nidhi (DBN).

- IANS

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Reader Comments

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Sarah B
The focus on expanding coverage to areas with no mobile network is the most important part here. Digital inclusion is crucial. Renaming USOF to Digital Bharat Nidhi sounds good, but the real test is execution. Let's hope the incentives actually work and bridge the connectivity gap in rural and remote regions.
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Vikram M
Taking back spectrum from companies under insolvency and putting it back to auction makes complete sense. It's a waste of a national resource just sitting idle. The 20-year validity period and the 6-month timeline for harmonization after auction are also practical measures. Now, DoT needs to act fast.
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Priya S
I appreciate the detailed recommendations, but I have a concern. The 35% spectrum cap in key bands is necessary to prevent monopoly, but is it enough? We've seen market consolidation. TRAI must ensure a truly level playing field so that a new company with Rs 50 crore net worth can actually compete with the giants.
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Rohit P
Finally some action on the 600 MHz band! This should help improve indoor coverage and pave the way for better 5G rollout. The key will be affordable spectrum prices. If the reserve prices are too high like in some past auctions, it will defeat the whole purpose. Hope they've learned from previous experiences.
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Michael C
As someone who travels frequently to smaller towns, the part about contiguous spectrum assignment and quick harmonization is critical. It directly impacts call drops and data speeds. If DoT can stick to that "within six months" timeline, we might finally see a noticeable improvement in network quality outside metros.

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