The government must look into the high reserve prices of 5G spectrum given the stress in the telecom sector and India’s ecosystem that is inadequate for a rollout, according to the report of a committee tabled in the Parliament on Monday.
The Telecom Regulatory Authority of India (Trai) has recommended a base price of ₹492 crore for every MHz of spectrum in 3,300-3,600MHz band, which is ideal for 5G.
Telecom operators said the recommended base price is too high, when compared to other countries. But the regulator believes the pricing is among the lowest in the world. The panel—the standing committee on IT—said, “There’s a need to revisit the nuances of spectrum pricing in other nations.”
The panel also told the department of telecommunications (DoT) that the base price should be fixed on the basis of long-term consumer benefit, rather than short-term revenue gain.
“We recommend that the issue of high spectrum prices is looked into and DoT/Trai should come out with a spectrum pricing policy that is sustainable, affordable, and acceptable to all, focusing on consumer interest and the socioeconomic goals of our country,” the committee said.
It also suggested that the 5G spectrum auction should be conducted at the earliest. According to the committee’s report, DoT has informed that it will conduct the auction for 3,300-3,600MHz bands in the next six months.
