The Telecom Regulatory Authority of India (TRAI) has recommended auctioning approximately 3000 MHz of spectrum in the millimetre wave (mmWave) band, allowing telecom operators to acquire more 5G spectrum in the upcoming auction.
On February 4, TRAI proposed auctioning spectrum in the 37-37.5 GHz and 37.5-40 GHz frequency bands while excluding the 42.5-43.5 GHz range due to the lack of a supporting device ecosystem.
“The frequency spectrum in 37-37.5 GHz and 37.5-40 GHz should be auctioned in the forthcoming spectrum sale. However, due to the absence of a device ecosystem, the 42.5-43.5 GHz band should not be included,” TRAI stated in its recommendations.
TRAI released its recommendations on spectrum block sizes and reserve prices for the 37-40 GHz band. The reserve price per MHz ranges from Rs 76 lakh in the Delhi metro circle to Rs 3 lakh in Jammu & Kashmir and the North East.
At a reserve price of Rs 5.98 crore per MHz, the spectrum in this auction is valued at Rs 17,940 crore—about 14 percent cheaper than the 26 GHz band, which was auctioned in 2022. Notably, there were no buyers for the 26 GHz band in the 2024 auction due to ecosystem limitations.
TRAI has proposed that, along with mobile operators, Category ‘A’ and ‘B’ internet service providers (ISPs) and machine-to-machine (M2M) service providers under the unified license should also be allowed to participate in the auction.
The availability of frequency spectrum in 37-37.5 GHz and 37.5-40 GHz frequency ranges to telecom service providers will enable the setting up of high-capacity, low-latency communication networks for advanced use cases.
“TRAI has recommended that in addition to the access service providers, Internet service providers and Machine-to-Machine service providers should also be permitted to participate in the auction,” it said.
While the regulator has provided pricing recommendations for the 37-37.5 GHz and 37.5-40 GHz bands, it has advised the Department of Telecommunications (DoT) to revisit the 42.5-43.5 GHz band at a later stage when device support improves.
The 37-37.5 GHz band has been designated globally for broadband mobile use, whereas the 37.5-40 GHz and 40-42.5 GHz bands support mobile and satellite gateway link applications.
Similarly, while the 40-42.5 GHz band is exclusively for satellite use, the 42.5-43.5 GHz band accommodates both mobile and satellite services.
Notably, telecom operators have advocated for flexible usage between terrestrial and satellite networks—arguing that interference would not be an issue—the regulator has yet to clarify its position on the matter.
TRAI has suggested auctioning the 37-40 GHz spectrum, known as band n260, in 100 MHz blocks per telecom circle with a 20-year validity period. The spectrum cap for n260 should be set at 40% of the total spectrum available for auction and should not be combined with the 26 GHz band for spectrum capping.
Minimum rollout obligations for band n260 should align with those of the 26 GHz band and apply equally to all telecom service providers, including existing and new entrants.
For payment, TRAI has recommended two options for successful bidders: full upfront payment or 20 equal annual instalments.
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