TRAI cuts 5G reserve prices by up to 37%, defers 6 GHz decision, suggests insolvency spectrum reclaim

Detailed reserve prices per MHz for 20 years have been recommended across all licensed service areas and bands from 600 MHz to 26 GHz, with metro circles such as Delhi and Mumbai attracting the highest valuations.

• TRAI suggests auctioning spectrum from 600 MHz to 26 GHz
• Entry norms eased, payment plans and spectrum caps revised
• 6 GHz band auction deferred pending global clarity

Did our AI summary help?

The Telecom Regulatory Authority of India (TRAI) has slashed 5G spectrum reserve prices by 7–37% across bands, setting the stage for what could be India’s most expansive spectrum auction yet.

Alongside the price cuts, TRAI has proposed putting all available airwaves from 600 MHz to 26 GHz on the block — a sweeping move that would make this the broadest sale in the country’s telecom history. The regulator has also recommended easing entry norms to lower barriers for new players and introducing a moratorium-backed payment plan for the premium 600 MHz band to spur participation.

However, TRAI has deferred the strategically significant 6 GHz band pending global harmonisation and ecosystem clarity, signalling a calibrated approach to future-ready spectrum allocation.

In total, about 11,789.15 MHz across nine frequency bands will go under the hammer, with an estimated aggregate reserve price of Rs 2.10 lakh crore. While reserve prices have been reduced on a pan-India basis, select circles where spectrum previously sold at premiums may see slightly higher base prices.

The recommendations follow a reference from the Department of Telecommunications (DoT) dated May 15, 2025, seeking advice on reserve prices, band plans, block sizes, quantum of spectrum and auction conditions across the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands, along with fresh inputs on 600 MHz and newly identified frequencies.

After issuing a consultation paper on September 30, 2025, receiving stakeholder comments and counter-comments, and holding a virtual open house discussion on December 12, 2025, the regulator has finalised its framework.

At the heart of the recommendations is a proposal to auction the entire available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands.

The steep cut in base spectrum prices follows TRAI’s acknowledgement that large chunks of airwaves went unsold in the 2022 and 2024 auctions, signalling weak demand at prevailing rates. While about 29% of the spectrum remained unsold in 2022, a staggering 98.66% found no buyers in the 2024 interim sale.

Between 2010 and 2024, the DoT auctioned spectrum worth Rs 17.23 lakh crore at reserve prices but managed to sell only Rs 5.64 lakh crore — leaving nearly Rs 11.6 lakh crore worth of airwaves unsold, translating into a revenue efficiency of just 32.7%.

To revive interest, TRAI has lowered reserve prices from the standard 70% of average valuation to 60% for select band-circle combinations that remained entirely unsold in the last two auctions.

TRAI has also asked the DoT to immediately initiate steps to take back spectrum held by telecom service providers undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, and include those airwaves in the upcoming sale.

The regulator also asked the Department of Telecommunications (DoT) to initiate action for taking back spectrum held by Aircel, Reliance Telecom and Reliance Communications, which are engaged in insolvency proceedings, and put the airwaves on sale in the upcoming auction.

In a move aimed at boosting competition, the regulator has proposed cutting the net-worth requirement for new entrants from Rs 100 crore to Rs 50 crore per licensed service area, and from Rs 50 crore to Rs 25 crore for Jammu & Kashmir and the North East. Existing band plans across all current IMT bands will continue, with block sizes and minimum bid quantities aligned with past auctions.

Rollout obligations will mirror those prescribed in NIA 2024.

To prevent excessive concentration, TRAI has recommended a uniform 35 percent spectrum cap across band groupings, including the 600 MHz band; the combined 700, 800 and 900 MHz bands; the combined 1800, 2100, 2300 and 2500 MHz bands; and individually for the 3300 MHz, 26 GHz and 37–40 GHz bands. Operators already exceeding the cap due to earlier acquisitions will not be required to surrender spectrum they currently hold.

The 600 MHz band has been given a distinct and more flexible treatment. TRAI has proposed auctioning it in 2x5 MHz blocks with a minimum bid of one block, extending the validity of spectrum by four additional years beyond the standard 20-year term, and deferring rollout obligations for the first four years. Alongside standard upfront or instalment-based payment options, the regulator has suggested an alternative structure requiring 5 percent upfront payment within 10 days of the demand note, followed by a four-year moratorium, with the remaining dues payable in equal annual instalments over 19 years while protecting the net present value of the bid amount.

On the upper 6 GHz band—6425–6725 MHz and 7025–7125 MHz—TRAI has taken a cautious stance. It has recommended reserving the band for IMT but not auctioning it in the forthcoming round, instead revisiting the issue after the outcome of the World Radiocommunication Conference 2027. The regulator has also suggested coordinated trials around 34 satellite uplink locations to determine appropriate keep-out distances for IMT base stations.

For the 1427–1518 MHz band, TRAI has advised re-examining the band plan once the government decides to auction it, encouraging engagement with regional and global standardisation bodies to facilitate its use for Supplementary Uplink, while ensuring that a contiguous 67 MHz block remains available for IMT services even after allocating 24 MHz to a government user.

Beyond auction design, the regulator has proposed broader structural reforms to strengthen competition. These include reconsidering the creation of a separate Access Network Provider authorisation under the Unified License for wholesale network services, fast-tracking Digital Connectivity Infrastructure Provider and Cloud-hosted Telecom Network authorisations under the Telecommunications Act, 2023, and setting aside certain quantum of spectrum in TDD bands such as 2300 MHz, 2500 MHz, 3300 MHz, 26 GHz and 37–40 GHz for ISPs, machine-to-machine providers and captive non-public networks, subject to a fresh reference to TRAI on pricing and terms.

TRAI has also proposed an incentive scheme to expand mobile broadband coverage in areas not served and not covered under the Universal Service Obligation Fund, now renamed Digital Bharat Nidhi. Successful bidders could opt for up to a 10 percent reduction in auction-determined price in exchange for deploying new base station sites within one year in coverage gaps identified by the DoT, with mandatory site sharing to ensure multi-operator presence.

Detailed reserve prices per MHz for 20 years have been recommended across all licensed service areas and bands from 600 MHz to 26 GHz, with metro circles such as Delhi and Mumbai attracting the highest valuations. For most bands between 800 MHz and 26 GHz, operators may choose between full or part upfront payment and 20 equal annual instalments, while the 600 MHz band carries the additional moratorium-backed option.