Telecom watchdog recommends 36% cut in base price of prime 5G spectrum

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India's telecoms watchdog on Monday recommended a 36% cut from its earlier proposed base price for the auction of a prime spectrum for 5G networks, signaling some relief to India's cash-strapped telecom sector.

The move comes as the Centre is gearing up for the next-generation 5G airwaves auction later this year, which is expected to see participation from the country's three main carriers – Vodafone Idea, Bharti Airtel Ltd, and Reliance Industries Ltd's Jio.

The government is aiming to begin the roll-out of 5G services by end-March 2023 in India, which is the world's second-biggest wireless market with over a billion subscribers.

The Telecom Regulatory Authority of India (TRAI) on Monday recommended a base price of 3.17 billion Indian rupees ($41.80 million) for the prime 5G frequency of 3300-3670 MHz band for use across the country. It had previously recommended a pricing of 4.92 billion Indian rupees ($64.88 million) for the same, which a telecom lobby group had described as 'unaffordable'.

Next-generation 5G networks, which can provide data speeds at least 20 times faster than 4G, are seen as vital for emerging technologies like self-driving cars and artificial intelligence.

(Disclaimer:  Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)