Will Your Mobile Bills Rise? TRAI’s Spectrum Price Cut Explained

In a significant move, the Telecom Regulatory Authority of India (TRAI) has recommended cutting reserve prices by 20–30% compared to the 2024 auction. The big question for consumers: will this affect your mobile bill?

Let’s understand what it means. 

What Has TRAI Proposed?

TRAI has recommended auctioning 11,700 MHz of unused spectrum across multiple bands. It has also suggested offering fresh 5G airwaves in the 37–40 GHz band valued at ₹17,940 crore.

More importantly, it has proposed lowering the starting (reserve) prices.

What is a reserve price? Well, it is simply the minimum price at which spectrum can be sold. If it is set too high, telecom companies hesitate to bid, and that is exactly what happened in 2024. Of the ₹96,238 crore spectrum on offer last year, only ₹11,341 crore was sold.

This time, the regulator wants better participation.

Why The 600 MHz Band Is Crucial

Nearly ₹1.3 trillion of the auction value is linked to the 600 MHz band, which is the spectrum that previously went unsold.

This band is valuable because it covers longer distances, works better indoors, and is ideal for rural connectivity. To make it attractive, TRAI has:

• Reduced its reserve price
• Allowed just 5% upfront payment
• Granted a four-year payment moratorium
• Relaxed rollout obligations

The idea is simple: make it easier for companies to buy and use this spectrum instead of leaving it idle.

Will Mobile Bills Go Up?

India’s telecom market is largely dominated by Reliance Jio and Bharti Airtel, which together hold over 76% of subscribers. Vodafone Idea remains financially stressed.

Lower competition typically increases pricing power.

However, since spectrum prices may fall, telecom companies may not need to raise tariffs immediately to recover auction costs. This means consumers are unlikely to see a sharp hike purely because of this auction.

Future tariff changes will depend more on competitive intensity and company finances than on this price cut alone.

Read more: Hindalco Subsidiary Novelis Signs $200 Million Share Subscription With AV Minerals.

Conclusion

The real impact of this auction will only become clear once bidding begins. If bidding remains measured and spectrum costs stay manageable, there may be little immediate pressure on mobile tariffs. However, aggressive bidding or limited competition could eventually translate into higher prices for consumers. 

For consumers, the immediate outlook is stable. For investors, the auction could influence telecom valuations and competitive dynamics.

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