As it prepares to host a 5G spectrum auction in the coming months, the Telecom Department has asked TRAI for advice on price, quantum, and other modalities relating to radio waves in various bands.

Given how successful this year’s 4G spectrum auction went when it bagged winning bids of over Rs 77,800 crore for 855.6 MHz of spectrum, V Raghunandan, TRAI Secretary, affirmed that the Department of Telecom (DoT) had sent TRAI a reference on 5G spectrum.

The reference was received last week, and recommendations were sought on reserve price, block size, band plan, and quantum of spectrum to be auctioned.

The reference is aligned with several bands, and if more information is needed, the Telecom Regulatory Authority of India (TRAI) would seek it and is currently undergoing an examination under TRAI.

DoT's reference is looking for TRAI's opinion on base pricing, quantum, and all other modalities for spectrum across several bands. Bands such as 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, as well as 3,300-3,600 MHz frequencies, which were not auctioned in the previous round, and millimetre-wave bands are among them.

High spectrum pricing has long been a source of displeasure for the telecom sector, and key companies have often expressed their displeasure with the situation.

Sunil Mittal, chairman, Bharti Airtel, expressed hope earlier this month that the regulator will look at the industry's demands for a reasonable reserve price for 5G spectrum, describing the next-generation 5G as a force multiplier.

The government recently approved a massive relief package for the telecom industry, which includes a four-year reprieve from paying statutory dues, permission to share scarce airwaves, a change in the definition of revenue on which levies are paid, and 100 percent foreign investment via the automatic route.

The measures include the elimination of the Spectrum Usage Charge (SUC) for airwaves purchased in future spectrum auctions, which would help companies like Vodafone Idea avoid having to pay hundreds of crores in unpaid previous statutory dues.

When questioned about probable deadlines for finishing the full consultation process, including conducting open house talks (a usual practice followed by the regulator) and finalizing its opinions. We would try our best to match the expectations”, assures Raghunandan.

"I truly hope that TRAI will look into the demands for a reasonable reserve price for 5G, since 5G should not be viewed as an exchequer, but rather as a force multiplier, as it will open up new opportunities for the industry, for the economy. The indirect monies that the government will receive from the 5G ecosystem will be significantly more than the reserve price for the spectrum", adds Mittal.