TRAi Proposes Auction of 11,790 MHz Spectrum Valued at ₹2.1 trillion

The Telecom Regulatory Authority of India (TRAI) has suggested that the entire radiowave spectrum of 11,790 MHz be put up for auction, with a reserve price that would value the asset at approximately ₹2.1 trillion. 

Scope and Valuation of the Proposed Auction 

The spectrum covers 9 frequency bands – 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz. If fully allocated, the reserve price totals around ₹2.1 trillion, which is 19% cheaper than the price recommendations made in 2022. 

Entry Criteria and Competition Safeguards 

TRAi has urged the Department of Telecommunications to halve the net worth requirement for new entrants from ₹100 crore to ₹50 crore per licensed service area, and to lower it further from ₹50 crore to ₹25 crore for Jammu and Kashmir and the northeast. A uniform 35% spectrum cap is also proposed to protect competition. 

Read More: Will Your Mobile Bills Rise? TRAI’s Spectrum Price Cut Explained! 

Reclamation of Insolvent Operators’ Spectrum 

The regulator recommends that the ministry immediately reclaim airwaves held by telecom companies undergoing insolvency and add those frequencies to the upcoming auction pool. 

Reserve Price Variations Across Bands 

While the base price is lower than the 2022 auctions for most Licensed Shared Access and band combinations, a few bands carry a higher reserve price than previous sales. 

Conclusion 

TRAi’s proposal outlines a comprehensive auction of 11,790 MHz of spectrum valued at ₹2.1 trillion, introduces lower entry thresholds for new players, and seeks to enhance competition while reclaiming spectrum from insolvent operators. 

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