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Business News/ Industry / Telecom/  Telcos demand 5G spectrum base price to be cut by more than half: Report

The Cellular Operators Association of India (COAI) has asked the government to reduce the spectrum base price by more than half, especially for 5G services, a report said.

“COAI has asked the government for a drastic cut in spectrum price for the proliferation of digital connectivity and specially for ushering 5G services. It has requested the government to reduce the base price by more than half in the proposed spectrum auction," news agency PTI reported while quoting industry sources.

The proposed spectrum auction is likely to be held in the April-June quarter of 2022.

Also Read: Bharti Airtel conducts 5G trials in the 700 MHz band in Kolkata

Back in March 2021, during the first auction of radio airwaves in five years, the government offered 2,308.80 MHz of spectrum in seven bands, at a reserve price of nearly 4 lakh crore. However, airwaves in the premium 700 MHz and 2,500 MHz bands did not find any takers mainly because of the high base price.

The government could not put 3.3-3.6 Ghz frequency range for auction as it could not get it vacated in time and the base price of the radio waves in the spectrum band was termed to be very expensive for 5G services.

Representatives of two separate telecom operators quoted to PTI different figures on the quantum of reduction demanded by the COAI for spectrum base price, but concurred that the COAI has sought to slash spectrum price by more than half.

Also Read: AI, ML, cloud, 5G to be most important technologies in 2022: Study

One representative said it is to the tune of 50-60 per cent, while the other senior official of another telecom operator mentioned 60-70 per cent.

The Telecom Regulatory Authority of India (Trai) had recommended a base price fixed at 492 crore per megahertz for spectrum in 3.3-3.6 Ghz.

Telecom operators interested in buying radio waves for 5G will have to shell out at least 9,840 crore on pan-India basis to buy spectrum in 3,300-3,600 Mhz band as Trai has suggested that it “should be put to auction in the block size of 20 MHz".

In May, the government allocated spectrum to the telecom companies for trials across various locations for six months in the 700 Mhz band, 3.3-3.6 Gigahertz (Ghz) band and 24.25-28.5 Ghz band.

At present 5G trials are underway in the country. The Department of Telecommunications (DoT) has extended the trial period to May 2022, or till the time spectrum auction results are out, whichever is earlier.

Also Read: US satellite TV firm Dish ties up with Cisco to sell 5G to businesses

Vodafone Idea has demonstrated the highest download speed of around 4 gigabit per second during the trials.

Telecom gear maker Nokia India had claimed to have recorded a top speed of 9.85 gigabits per second on VIL network in back-end data transmission, which means connecting mobile base stations network, during 5G trials in Gandhinagar, Gujarat.

VIL has been running 5G trials in Gandhinagar with Nokia and in Pune with Ericsson.

(With PTI inputs)

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Updated: 28 Nov 2021, 05:52 PM IST
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