The Telecom Regulatory Authority of India (Trai) has stuck to its earlier recommendation on base price and valuation of spectrum, including for 5G radiowaves. While giving views on prices, it made clear to the telecom department that it has considered all the relevant factors, including the methodology, assumptions, developments between the spectrum auction in 2016 and its suggestions of August 1, 2018, and the rationale for spectrum valuation and reserve price.
Trai said the authority reiterates the spectrum valuation and reserves prices as contained in its recommendations dated August 1, 2018. However, it has yielded ground on the issue of lock-in period it had previously recommended for spectrum in 3300-3600 MHz band (for eligibility on spectrum trading). It has now suggested a lower lock-in period of two years for this band against 5 years prescribed earlier. It also said that authority recommends that no rollout obligations should be mandated for spectrum in 3300-3600 MHz band. Further, lock-in period for spectrum in this band for becoming eligible for spectrum trading should be same as in other bands that is 2 years.
Recently, amid financial stress in the sector, Digital Communications Commission (DCC), the highest decision making body in the telecom department, had decided to ask Trai to reconsider its spectrum recommendations and to ensure competition and greater participation of larger set of players in auctions slated for 2019. DCC felt that Trai should revisit its 2018 suggestions keeping in mind the government's larger objective of digital proliferation, broadband for all and inclusive 5G services.
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