TRAI Issues Recommendations for 5G mmWave Spectrum Auction at Lower Prices

The Telecom Regulatory Authority of India (TRAI) has released recommendations for the upcoming auction of millimetre wave (mmWave) spectrum for 5G services. The spectrum will be offered at a relatively lower price compared to previous auctions, aimed at encouraging broader participation and accelerating the rollout of 5G services in India.

In its statement, TRAI suggested including spectrum in the 37-37.5 GHz and 37.5-40 GHz bands for the next auction, with a block size of 100 MHz per telecom circle and a validity period of 20 years. The regulator also recommended setting a spectrum cap at 40% of the total spectrum available for auction, and stated that these bands should not be combined with the 26 GHz band for the purpose of the spectrum cap.

Additionally, TRAI has set the reserve price for the 37-40 GHz bands at INR 59.8 million (around US$686,000) per MHz, marking a 14% reduction compared to the 26 GHz spectrum auctioned in 2022. The recommendation comes after the Department of Telecommunications (DoT) included the 26 GHz band in its 5G spectrum auction in June 2024, but found no takers as telecom companies focused on renewing existing spectrum licenses and acquiring mid-band spectrum.

The 37-40 GHz bands, already in use for 5G services in the US, are expected to face fewer challenges in terms of device ecosystem compared to the 26 GHz band. TRAI had also considered including the 42.5-43.5 GHz bands in the auction but decided against it due to the lack of an ecosystem for this band.

It is now up to the DoT to schedule the next auction.

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