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TRAI Issues Recommendations For 5G Spectrum Auction

The Telecom Regulatory Authority of India (TRAI) has issued its recommendations on 5G Spectrum pricing.

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Josun J
New Update
TRAI isn't considering any tariff floor pricing
The Telecom Regulatory Authority of India (TRAI) has issued its recommendations on 5G Spectrum pricing.
It has proposed a reduction in the 5G spectrum reserve prices for different frequency bands compared to the last discovered prices. TRAI has recommended a reserve price for licensing spectrum 20 years (for the same to be licensed by operators for 30 years, it will be priced at 1.5 times the recommended reserve price)
One of the biggest uses of 5G networks is likely to be for Industry 4.0 and captive networks. Voice & Data had carried a detailed feature in the March issue. Captive networks have been permitted by TRAI in its recommendations:
Enabling framework created for private networks: all options to be opened for uptake of captive wireless private networks, as below:
a. Private network through TSPs using a Network Slice from TSP’s PLMN network.
b. Enterprise may request TSPs to establish an independent isolated private network in enterprise’s premises using the TSP’s spectrum.
c. Enterprise may obtain the spectrum on lease from TSPs and establish their own isolated Captive Wireless Private Network.
d. Enterprise may obtain the spectrum directly from the Government and establish their own isolated Captive Wireless Private Network.
e. For establishing captive wireless private network using IMT spectrum, the entity/enterprise should have a permission/license under Section 4 of the Indian Telegraph Act, 1885. Very light touch online portal-based regime for acquiring permission/license for ‘Captive Wireless Private Network (CWPN)’ has been recommended.
  • TSPs permitted to lease their spectrum to Captive wireless Private Network permission holder/ Licensees. Key elements to be included in the Guidelines for leasing of access spectrum by Telecom Service Providers to the Captive Wireless Private Network Permission holder/Licensees have been recommended.
  • Certain spectrum be earmarked for Captive wireless private networks to be assigned directly by DoT to Captive Wireless Private Network Permission holders/Licensees.
  • For assessment of demand of spectrum for private networks, DoT should create a portal, seeking demand for spectrum from companies.
  • Key elements to be included in the Guidelines for Spectrum Assignment to Captive Wireless Private Network Permission holder/Licensee have been recommended.
  • Captive Wireless Private network should not be connected to public network in any manner. The public network includes PSTN, PLMN, GMPCS and public internet
SPECTRUM BANDS & PRICING

“All available spectrum in existing bands viz. 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and new spectrum bands viz. 600 MHz, 3300-3670 MHz and 24.25-28.5 GHz, be put to auction,” Trai said in its recommendations issued on 11th April 2022.

In addition to lower spectrum price, the TRAI has also suggested easier payment options for the operators. “For the long-term growth and sustainability of the telecom sector, infusing liquidity and encouraging investment, the Telecom Service Providers should be allowed easy payment options including part payment with flexibility of moratorium,” the regulator said.

TRAI has allowed for easy surrender of spectrum.
For ease of doing business, easy and transparent spectrum surrender guidelines with a spectrum surrender fee of Rs. 1 lakh per spectrum band per LSA has been recommended.

TRAI in its recommendations has said that “DoT should come out with a plan for refarming 526-582 MHz band to be utilized for IMT deployments. To make 526-582 MHz band available for IMT, DoT should work with MIB to prepare a plan for an early migration from Analogue to Digital Transmission, so that the frequency band from 526-582 MHz can be vacated for IMT services,” the regulator added.

The regulator has said that DoT should carry out harmonization exercise in 800 MHz, 900 MH and 1800 MHz bands immediately after conducting the auction so that frequencies assigned to the telecom operators are in contiguous manner.

Roll Out Obligations

To facilitate the new entrants, in respect of roll out obligations for 700 MHz, 800 MHz, 900 MHz and 1800 MHz bands, the time period of 1 year for meeting the MRO for Metros LSAs (coverage of 90% of the LSA within one year from the effective date of license or the date of assignment of spectrum won in this auction process, whichever is later), should be enhanced to 2 years (40% coverage by the end of 1st year and 90% coverage by the end of 2nd year), the TRAI said.

Spectrum cap

TRAI has also proposed rationalising of spectrum caps.

This includes a cap of 40% on combined spectrum holding in sub-1 GHz bands, cap of 40% on combined spectrum holding in 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands, individual band-specific cap of 40% for 3300-3670 MHz and 24.25-28.5 GHz spectrum bands. Overall cap across all bands has been done away with

Satellite Services

TRAI has said that frequency range 27.5-28.5 GHz should be used for IMT as well as Satellite Earth Station Gateway (Earth to space) on a coexistence basis.  The Satellite Earth Station Gateway should be permitted to be established in frequency range 27.5-28.5 GHz at uninhabited or remote locations on case-to-case basis, where there is less likelihood of 5G IMT services to come up. “ DoT should prescribe the exclusion zone requirement for co-existence of IMT and satellite earth stations (Earth to space) in 27.5-28.5 GHz frequency range. DoT should create a software defined automated process on a portal having database of coordinates of the IMT base stations in mmWave. The geofencing coordinates of the proposed earth station in 27.5-28.5 GHz can provide the feasibility results through the portal for establishing the earth station,” TRAI said.

Mr. R. K. Bhatnagar, Director General of VOICE welcomed the recommendations as it was in line with representations by VOICE on behalf of the local manufacturing sector.
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