TRAI backs auction of all available airwaves

India’s telecom sector is preparing for its next spectrum auction, with airwaves worth an estimated Rs 2.1 lakh crore expected to be offered. The Government of India (GoI) is likely to put the entire available 11,970 MHz of spectrum up for bidding, marking one of the largest offerings in recent years.

Notably, the base price of the spectrum is around 19 per cent lower than in the previous auction. Telecom operators have long argued that high reserve prices constrain investment and strain balance sheets. The reduction is therefore expected to be welcomed by the industry, particularly at a time when operators are still working to monetise their 5G networks.

TRAI Proposes Full Auction and Eased Entry Norms

The Telecom Regulatory Authority of India (TRAI) has recommended that all available spectrum across multiple bands be auctioned. These include the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands. A uniform spectrum cap of 35 per cent has also been proposed to safeguard competition and prevent excessive concentration of airwaves.

In addition, TRAI has suggested measures aimed at encouraging new entrants. The net worth requirement for participation has been proposed to be reduced from Rs 100 crore to Rs 50 crore per licensed service area, and from Rs 50 crore to Rs 25 crore for the North East and Jammu and Kashmir. The regulator has also recommended that spectrum held by insolvent companies be taken back and included in the auction.

While the lower pricing may ease immediate financial pressure, operators are expected to remain cautious in their bidding strategies as returns on 5G investments continue to evolve.