COAI asks government to reduce 5G spectrum base price by more than half
COAI asks government to reduce 5G spectrum base price by more than half

COAI asks government to reduce 5G spectrum base price by more than half . According to industry insiders, the telecom industry association COAI has asked the government to decrease the base price of spectrum by more than half for the forthcoming auction, especially for 5G services.

In March 2021, the government issued 2,308.80 MHz of spectrum in seven bands for the first time in five years, at a reserve price of about 4 lakh crore.

However, because to the high base price, airwaves in the premium 700 MHz and 2,500 MHz bands went unsold. The government was unable to put the 3.3-3.6 Ghz frequency range up for auction because it was unable to obtain it in a timely manner, and the base price of radio waves in the spectrum band was deemed to be prohibitively expensive for 5G services.

“COAI has asked the government to slash spectrum prices dramatically in order to promote digital connectivity and, in particular, to bring in 5G services. It has asked the government to lower the base price in the proposed spectrum auction by more than half “PTI spoke with a representative from a telecom operator.

The proposed spectrum auction is expected to take place in the April-June 2022 quarter. Representatives from two different telecom providers gave differing estimates for the scale of decrease sought by the industry association, but agreed that the COAI wanted to cut spectrum prices in half. One spokesperson stated that it is in the range of 50% to 60%, while another senior official from another telecom operator stated that it is in the range of 60% to 70%.

For spectrum in the 3.3 to 3.6 Ghz band, the Telecom Regulatory Authority of India (TRAI) recommended a basic price of 492 crore per megahertz.

Telecom companies interested in purchasing radio waves for 5G will have to pay a minimum of Rs 9,840 crore on a pan-India basis to purchase spectrum in the 3,300-3,600 Mhz band, which TRAI has advised “should be put to auction in block sizes of 20 MHz.”

The government allotted spectrum to telecom businesses in the 700 Mhz band, 3.3-3.6 Gigahertz (Ghz) band, and 24.25-28.5 Gigahertz (Ghz) band for six-month trials in various places in May.

5G trials are under underway throughout the country. The trial term has been extended by the Department of Telecom until May 2022, or until the results of the spectrum auction are released, whichever comes first.

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