Why DoT Wants TRAI To Reduce Prices Of 5G Spectrum?

The telecom ministry DoT is reportedly planning to ask telecom regulator TRAI to decrease the prices of 5G airwaves in the country. This means there are chances that the regulator might reconsider the prices of the 5G airwaves along with the 700 Mhz band.

Notably, no telecom operator is buying 700 Mhz band due to its price. Similarly, telecom operators said that 5G airwaves are not affordable and will affect the deployment in the country.

"We'll have to go back to Trai as the situation has changed after the recent 4G auctions where 700 MHz band has remained unsold. However, it is finally up to the regulator whether they want to lower the prices," the official was quoted by LiveMint.

5G Reserve Prices In India

The Telecom Regulatory Authority of India (TRAI) has set a reserve price of 5G spectrum in India, where telecom operators have to pay Rs. 492 crore per Mhz for the 3,300-3,600MHz bands. It is worth noting that this is a huge amount and spending such a big amount is not possible for Vi (Vodafone-Idea). Both Vi and Airtel are under AGR debt and have to pay 10 percent of the amount by the end of March 2021.

700 Mhz Spectrum Pricing: Details

All telecom operators have bought spectrum in almost all bands, but no one purchased the 700 Mhz bands despite TRAI reduced prices by 40 percent and now it is priced at Rs. 6,568 crore from Rs. 11,485 crore. You'll be surprised to know that no one bought the 700 Mhz band in the last auction.

Why 700 Mhz Is Good For 5G Deployment?

The 700 Mhz band is quite efficient in terms of technology and it has been used by many countries to offer 5G services. The upcoming technology can provide good indoor coverage. But, the cost of this band can cover 59 percent of entire bands, which means it can be close to 2.3 lakh crore. Furthermore, the Department of Telecommunication has managed to achieve Rs. 77,800 crores after selling airwaves in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz bands.