NEW DELHI: The Department of Telecommunication (DoT) on Friday asked Trai if it is possible to reduce the base price of 5G spectrum in the upcoming auction.
The department also urged the telecom regulator to reserve 5G spectrum for state-owned BSNL and exclude the telco from the upcoming auction. The department referred back some of the TRAI’s recommendations on 5G auction.
“Taking into account recent policy decisions on allocation of spectrum to strategic sector PSU, i.e., BSNL and considering the request of BSNL, following spectrum may be reserved for BSNL in all the 22 LSAs and be excluded from the spectrum availability for upcoming auction,” said DoT in its response.
Last month (11 April), Trai had came up with its recommendations on 5G modalities, in which it recommended that the entire available spectrum should be put to auction in the forthcoming auction.
On the reserve price issue, the authority recommended that the reserve price for spectrum allocation in the case of 30 years should be equal to 1.5 times the reserve price of allocation for 20 years in the respective band. DoT asked if it was possible to keep the validity period for spectrum assignment through the upcoming auction at 20 years, as it was in previous auctions.
DoT also asked if there could be a case for reduction in reserve prices.
“Given fast-changing techno-commercial ecosystem, spectrum valuation at shorter intervals may be desirable. For instance, in licensed shared access (LSAs)/bands where spectrum remains unsold, there could be a case for cut in prices. Alternatively, there could be a spectrum band which may be more valuable due to a technological break-through,” said DoT.
On BSNL
DoT also asked telecom sector regulator Trai to reserve 5G spectrum for state-owned BSNL and exclude the telco from the upcoming auction