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The department of Telecom is expected to submit the 5G spectrum auction proposal to the Union Cabinet for final approval next week, an official source stated. According to the source, the digital communications commission (DCC), has finalized the base tariff proposed by the Telecom Regulatory Authority of India (TRAI).
The TRAI-recommended base pricing has been rejected by telecom companies. The DCC has chosen to leave the spectrum frequency range between 27.5-28.5 gigahertz for satellite sevices rather than auction it. The telecom Regulatory Authority (TRAI) proposed a base tariff for this frequency range, claiming that it could be utilized for both mobile and satellite services. The regulator has left it up to the government to decide whether or not to auction 27.5-28.5 GHz in its response to the Department of Telecom last week.
"The DCC has firmed up its view. It's not a decision making body. It will give recommendation to the Cabinet for final approval of the auction plan. There is no change in the base price that Trai has recommended," the official said.
The DCC agreed to TRAI’s request that private wireless or a 5G network be set up for captive use. TRAI proposed a huge auction proposal worth over Rs 7.5 lakh crore at the base price for radiowaves allotted over a 30-year period.
The TRAI suggested a 39% drop in the reserve or floor price for the sale of spectrum for mobile sevices, including the latest 5G offering, in order to align revenue projections with the industry’s paying capacity.
If the government awards the spectrum for a period of 30 years, the TRAI has adviced a massive auction proposal worth over Rs 7.5 lakh crore. According to a back-of-the-envelope calculation, the entire value of the proposed spectrum auction at the reserve price would be roughly Rs 5.7 lakh crore after 20 years.
Due to vast swaths of spectrum remaining unsold in the last two auctions, TRAI advised the government to sell airwaves in all existing bands of 700 MHz, 800 MHz, 900 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz,2500 MHz, as well as additional slots of 600 MHz, 3300-3670 MHz, and 24.25-28.5 GHz.