Government may further reduce base price of 5G spectrum 

NEW DELHI:  The government on Thursday hinted that it may further cut the 5G spectrum base price in the upcoming auction. Telecom minister Ashwini Vaishnaw, in an interaction with media, said spectrum price should be reasonable to ensure the last-mile connectivity. 

The minister called spectrum a developmental tool, and telecom services as necessary as air, water, health and education. “Telecom Regulatory Authority of India (TRAI) has made a few changes in the price of its 5G recommendation. However, there is demand from the industry to further lower the price. To speak on this issue in the press, I think it's not the right forum. But we will consider their demand, in a systematic way,” he said.

He added that the world agreed that the spectrum was a tool for development and it was as necessary as water, air, health, education, and electricity. “Thus, I am confident this price issue will be resolved,” the minister remarked. Vaishanw said the industry was stable after the reforms introduced by Prime Minister Narendra Modi in September 2021 and now, the industry wanted to grow further. 

TRAI has recommended cut in price by nearly 39% compared to the previously fixed price. But the industry has expressed its disappointment at the sector regulator’s recommendations on the 5G spectrum pricing and said the rates were still the highest in the world.  The Cellular Operator Association of India, which represents all the three telecom operators- Reliance Jio, Vodafone Idea and Bharti Airtel -- said  TRAI has only recommended a 35-40% cut in prices as against their demand of 90% cut.  

On the auction of 5G, the minister said the Department of Telecommunication was working as per the schedule and it was expected to be held in early June. The minister added that the Digital Communications Commission will take a call on the recommendations and approach them for clarification.