The Telecom Regulatory Authority of India (Trai) has kicked off consultations for the next spectrum auction through which the government plans to sell airwaves in nearly 10 bands, including the upper 6 GHz band that is primarily for next generation wi-fi and will go under the hammer for the first time.
The regulator has floated a consultation paper with 44 questions on pricing, auction design and participation norms, inviting stakeholder comments by October 28 and counter-comments by November 11.
After large portions of spectrum went unsold in recent auctions, Trai is exploring ways to make the sale more attractive, including opening participation to players beyond licensed telecom operators.
The auction will include existing IMT bands (800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz) alongside new bands such as 600 MHz, 1427–1518 MHz, 6425–6725 MHz, and 7025–7125 MHz.
The 600 MHz band is used for mobile broadband services, particularly 5G wireless network, because its low frequency is ideal for providing broad coverage and penetrating buildings.
While some of these bands have limited global deployment or fragmented availability, the department of telecommunications (DoT) has asked Trai to recommend timelines, reserve prices, block sizes, and band plans. DoT also indicated that 687 MHz of spectrum is to be re-farmed for International Mobile Telecommunications use.
After a large portions of spectrum went unsold in recent auctions, Trai is exploring ways to make the sale more attractive, including opening participation to players beyond licensed telecom operators.
India’s last auction in June 2024 saw 10,522 MHz of spectrum worth Rs 96,238 crore offered at base price but only 141 MHz was sold for Rs 11,340 crore.
Between 2010 and 2024, spectrum worth Rs 17.23 lakh crore was put on sale but just Rs 5.64 lakh crore was sold, leaving nearly Rs 11.6 lakh crore worth of airwaves unsold.
In its paper, Trai acknowledged that high reserve prices may have dampened demand and said spectrum valuation models — covering band selection, technology parameters, and payment terms — need to be reviewed.
It also said the department of economic affairs has emphasised the need to enhance competition and avoid oversupply in future auctions.
Auction dynamics depend not only on demand for telecom services but also on the number of bidders, which influences price discovery, the regulator said. Since 2021, aggressive bidding has waned, with most spectrum selling close to reserve prices due to industry consolidation, high base prices, and the heavy financial load of 5G rollouts.
Trai has also sought views on modifying minimum spectrum rollout obligations, given consumer complaints about coverage gaps on highways, train routes, and rural areas.
The regulator’s drive tests have revealed several such black spots, leading it to questions if rollout requirements should be reframed in the public interest.
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