The Digital Communications Commission, the apex decision-making body at the telecom department, on Friday approved a Rs 5.22 lakh crore spectrum auction plan entailing 8300 MHz of airwaves across 22 circles and the sale is likely to take place in March-April.
“The DCC has today approved the recommendation of Telecom Regulatory Authority of India (TRAI). We are hopeful that auction shall be conducted in March-April,” Telecom Secretary Anshu Prakash told reporters here.
He said the auction will entail sale of over 8300 MHz of spectrum spread over all 22 telecom circles, the reserve price of which comes to Rs 5,22,850 crore. The Government did not reduce price of spectrum despite request from telecom operators.
“We are hopeful of healthy participation as demand for data is growing. Telecom operators need spectrum to further expand their network,” Prakash said.
However, industry body COAI Director General Rajan S Mathews said he does not see stressed balance sheet of telecom operators to give them appetite to bid for spectrum, especially for 5G services.
“The quantum of 5G spectrum is too less and price is too high. I don’t feel that stressed balance sheet of telecom operators will allow them to bid for this spectrum. If it has been put in auction to see the response of the market and reduce price later, then it helps like it happened in case of 700 MHz band,” Mathews said.
Telecom Minister Ravi Shankar Prasad had informed Parliament that 275 MHz of radiowaves frequency between 3,300-3,400 MHz and 3,425-3,600 MHz band is available for 5G auction.
The COAI said with spectrum reserve prices 4-6 times higher than that of similar spectrum sold recently in several countries, high levels of debt and prevailing financial stress in the sector, telecom service providers will find it very difficult to raise funds to participate in the auctions.
TRAI had initially given recommendation for radiowaves valued at Rs 4.9 lakh crore.