TRAI Extends Deadline for Stakeholder Views on 5G Spectrum Auction Paper

On Thursday, after requests from the industry, TRAI extended the deadline for stakeholders’ views for the 5G spectrum auction paper.

TRAI Extends Deadline on Stakeholder Views

The sector regulator noted that the deadlines were 28th December 2021 for comments and 11th January 2022 for counter comments.

It notified that it has extended the deadlines; now, it has extended the deadline for comments to 10th January 2022. Furthermore, TRAI will accept the counter comments till 24th January 2022. It also added that it will not entertain any other requests for extensions.

The notification read, “keeping in view the requests of stakeholders for extension of time for submission of comments, it has been decided to extend the last date for submission of written comments and counter comments up to 10th January 2022 and 24th January 2022 respectively. No further requests for extension would be considered".

The government has its work cut out in the race to conduct the 5G spectrum auction in April-May 2022. What's more, the industry has all but confirmed that the government wants the 5G rollout to happen before Independence Day 2022.

Incidentally, TRAI had floated a consultation paper on 30th November on the 5G spectrum. The paper discussed details about spectrum across multiple bands. However, the paper did not discuss any pricing changes, which has left everyone in the dark. With no clarity on spectrum pricing, it is safe to assume that the pricing remains unchanged from now.

5G Spectrum Auction Paper from TRAI

The consultation paper, titled, “Auction of Spectrum in frequency bands identified for IMT/5G”, has replied to the DoT’s questions. In total, the telecom department had sent TRAI 74 questions regarding multiple issues around the 5G spectrum auction. In all, TRAI has answered the following issues:

• The applicable reserve price, band plan, block size, the quantum of spectrum to be auctioned, and associated conditions for auction of spectrum in 526-698 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz, and 24.25-28.5 GHz bands for IMT/5G.
• Quantum of spectrum/band, if any, to be earmarked for private captive/isolated 5G networks, competitive/transparent method of allocation, and pricing, for meeting the spectrum requirements if captive 5G applications of industries for machine/plant automation purposes/M2M in premises.
• Associated conditions like upfront payments, applicable moratorium period after upfront payments, number of deferred payment installments, and other related modalities for auction of the spectrum with validity for 30 years.
• For creating provisions for the surrender of the spectrum, conditions, and fee for such surrender of the spectrum.
• Any other recommendations deemed fit for the purpose of spectrum auction in these frequency bands, including the regulatory/technical requirements as enunciated in the relevant provisions of the latest ITU-R Radio Regulations.

No Clarity on the Spectrum Pricing

Per the consultation paper, TRAI uses a variety of methods to decide on the spectrum prices. First, it looks at international spectrum pricing, and then, it looks at the technical efficiency factor. Basically, a technical efficiency factor defines how a particular spectrum band is better than a benchmark spectrum band. For instance, the regulator decided on the base price of the 700 MHz spectrum by setting the 1800 MHz band as the benchmark. Then, it compared the two bands for technical superiority and priced the former band accordingly.

As such, TRAI has acknowledged the importance of mmWave in India. In clause 2.39, TRAI said,

As per a report on “The Impacts of mmWave 5G in India” published byGSMA in October 2020, mmWave spectrum, in particular, will play a crucial role in enabling the high-speed and ultra-low-latency features required by many 5G applications. India will benefit significantly from mmWave-enabled 5G. Over the period 2025–2040, it has been estimated that mmWave-enabled 5G will deliver $150 billion in additional GDP for India.

Therefore,  TRAI has recommended DoT to set a “balanced intermediate reserve price”, so that the government can monetize spectrum effectively. Also, TRAI said that the price should not be too high so that the TSPs can participate in the auction.