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The DoT will submit its responses to TRAI after the latter sent a few queries around the 5G spectrum's availability. With the work on the 5G spectrum auction picking up pace, the sale might happen sooner than expected.
DoT, TRAI Working to Get 5G Spectrum Auction Back on Track
In the case of TRAI, it wants DoT to chart out a clear roadmap to 5G spectrum auction. This includes spectrum availability, usage by government agencies, and other details. In turn, TRAI will publish a consultation paper for the sale of the airwaves. Sources report that the DoT has readied the responses, and now await approval from the DoT Secretary, before shipping the responses to TRAI.
Back in September, DoT had asked TRAI for its recommendations on pricing, quantum, and other details related to airwaves in various 5G bands. These bands include 500 MHz, 700 MHz, 800 MHz, 900 MHz, 1.8 GHz, 2.1 GHz, 2.3 GHz, most of which were put on the gavel for the auction in March. Along with these, the purely 5G bands are also under discussion; these include 3.3-3.6 GHz and mmWave bands.
In March, the government was able to make over Rs. 77,146 crore through the sale of 4G spectrum. The auction saw the sale of 855.6 MHz of spectrum. However, there was a total of 2,308 MHz of spectrum on auction; that translates into a sale of about 37%. What's more, the 700 MHz and the 2.5 GHz bands, because of their high base prices, remained unsold. Incidentally, the 700 MHz band has remained unsold since 2016.
The telecom industry has repeatedly and insistently asked for a price cut on the spectrum. However, with the government set to support the industry with the telecom relief package, and further reforms, the telcos might get their wish. So far, though, nothing has been decided on anything yet.
5G Auction - Will it Happen in May 2022?
Recently, the Communications and IT minister Ashwini Vaishnaw said the 5G spectrum auction will likely happen around April-May next year.
Earlier on, the government was looking to conduct the same in February-March. However, by extending the 5G trials by 6 more months, the Center has pushed the airwaves sale back by at least a month.
However, DoT has been working behind the scene to bring together everything before it has to conduct a 5G spectrum sale. Recently, the DoT had set up a committee to create policies for the commercialization and monetization of 5G. Essentially, the government wants to know the viability of having 5G networks. This includes having information about the current availability of 5G products, devices, and applications. It also includes making 5G devices more widely available to the customers, and what can stakeholders do to ensure that.
TRAI has sought clarity on spectrum bands since DoT has not yet completed the formulation of a National Frequency Allocation Policy. Without that, it becomes difficult for TRAI to allocate any spectrum bands for TRAI. What's more, there are issues around a lot of spectrum bands. One of the most high-profile of such a disagreement is the noise around the mmWave spectrum. With the satcom players staking a claim for exclusive use, TRAI needs an NFAP to decide who gets the spectrum.
All things considered, the spectrum auction looks set for further delays. However, if it happens in May 2022, India can see a 5G rollout as early as January 2023.