5G spectrum pricing not discussed in the Cabinet meeting

The issue of 5G spectrum pricing  was not taken up for discussion in the Cabinet meeting yesterday, informed Anurag Thakur, Minister for Information, as reported by Moneycontrol.

The Union Cabinet, at its meeting on Wednesday was expected to make a decision on spectrum pricing for 5G auctions. The Digital Communications Commission (DCC) has accepted the Telecom Regulatory Authority of India's (TRAI) reserve price recommendation and urged that the Cabinet decide whether or not the rates should be cut.

The government will also decide whether spectrum should be put up for auction for a 20-year or 30-year period, as it did last year when the same body opted to auction the airwaves for a 30-year period.

The  government is taking both options into consideration because TRAI has set a price for 30-years which is 1.5 times higher than the price for 20-years. This allows telecom operators to make a decision based on their financial situation.

Following the approval by the Cabinet, the Department of Telecommunications will immediately begin work on the notice seeking applications(NIA). This document is essential since it contains all of the formal guidelines for the auction process. The auction normally begin 54 days after the NIA has been finalized and released.