TRAI Recommends Full-Spectrum IMT Auction, 35% Cap Retained

The Telecom Regulatory Authority of India (TRAI) has released its much-awaited recommendations for the upcoming auction of radio frequency spectrum across key bands identified for International Mobile Telecommunications (IMT), setting the stage for India's next phase of 4G and 5G expansion.

The recommendations follow a reference from the Department of Telecommunications (DoT) seeking guidance on reserve prices, band plans, block sizes, spectrum quantum and auction modalities across existing and newly identified bands.

Entire Available IMT Spectrum to Be Auctioned

TRAI has recommended that the entire available spectrum in the following bands be put to auction:

• 600 MHz

• 800 MHz

• 900 MHz

• 1800 MHz

• 2100 MHz

• 2300 MHz

• 2500 MHz

• 3300 MHz

• 26 GHz

Additionally, DoT has been urged to immediately take back spectrum held by telecom service providers (TSPs) undergoing insolvency proceedings and include it in the forthcoming auction.

The spectrum will be auctioned on a Telecom Circle/Metro basis for a validity period of 20 years, using the Simultaneous Multiple Round Auction (SMRA) format.

Entry Barriers Lowered for New Players

In a move aimed at enhancing competition, TRAI has recommended:

• Reducing net-worth requirements for new entrants from ₹100 crore to ₹50 crore per Licensed Service Area (LSA)

• For Jammu & Kashmir and North East LSAs, reduction from ₹50 crore to ₹25 crore

TRAI has also reiterated its earlier proposal to create a separate Access Network Provider (ANP) authorisation under the Unified Licence framework to enable network-layer unbundling and boost competition.

35% Spectrum Cap Retained Across Bands

The regulator has retained the 35% spectrum cap across various bands, including:

• Sub-1 GHz bands (600/700/800/900 MHz)

• Mid-bands (1800/2100/2300/2500 MHz)

• 3300 MHz

• 26 GHz

• 37–40 GHz

However, TSPs already holding spectrum beyond the cap will not be required to surrender existing holdings.

600 MHz Band Gets Special Flexibility

The 600 MHz band (n105) has received distinct treatment to improve commercial viability:

• Block size: 2×5 MHz (paired)

• Spectrum validity: 20 years + 4 additional years

• Rollout obligations delayed by four years

• Innovative payment option introduced

Under the special payment scheme:

• 5% upfront payment within 10 days

• 4-year moratorium

• Balance payable over 19 equal annual instalments starting from year 6

• Net Present Value (NPV) protection maintained

This structure aims to encourage participation in the sub-GHz band, which offers superior coverage and rural penetration.

6 GHz Upper Band Reserved for Future IMT Use

TRAI has recommended that the 6425–6725 MHz and 7025–7125 MHz bands (6 GHz upper band) be reserved for IMT but not auctioned in the upcoming round.

The regulator advised re-examining auction feasibility after WRC-27 outcomes, given international harmonisation considerations.

It has also recommended field trials around 34 satellite uplink locations to determine safe coexistence parameters.

Reserve Prices Announced Across Circles

TRAI has recommended reserve prices across all circles for each band, with significant variations based on market size.

For example (per MHz for 20 years):

• Delhi: ₹441 crore (600 MHz band)

• Mumbai: ₹292 crore (600 MHz band)

• Andhra Pradesh: ₹233 crore (600 MHz band)

• North East: ₹14 crore (600 MHz band)

Prices are correspondingly lower in higher-frequency bands like 3300 MHz and 26 GHz, reflecting propagation characteristics and market demand.

Incentive Scheme to Expand Rural Coverage

In a significant pro-competition and connectivity push, TRAI has proposed a coverage-linked incentive scheme:

• TSPs may opt for up to 10% reduction in auction-determined price (ADP)

• In return, they must deploy new 4G/5G base stations in uncovered areas identified by DoT

• Mandatory site-sharing at reasonable and non-discriminatory prices

This proposal targets coverage gaps not addressed under the Universal Service Obligation Fund (USOF), now renamed Digital Bharat Nidhi (DBN).

Support for ISPs, M2M and Private Networks

TRAI has recommended:

• Setting aside spectrum in TDD bands (2300/2500/3300/26/37–40 GHz) for ISPs, M2M providers and Captive Non-Public Networks (CNPNs)

• Introducing Digital Connectivity Infrastructure Provider (DCIP) and Cloud-hosted Telecom Network (CTN) authorisations under the Telecommunications Act, 2023

These measures are aimed at enabling enterprise 5G, private networks and Industry 4.0 use cases.

Fresh Valuation Every Three Years

The regulator has recommended conducting fresh spectrum valuation exercises every three years.

For interim auctions:

• Auction-determined prices (indexed) will apply where spectrum was previously sold

• Past reserve prices (without indexation) will apply where spectrum remained unsold

Industry-Wide Consultation Process

The recommendations follow a comprehensive consultation process initiated on 30 September 2025. TRAI received:

• 19 stakeholder comments

• 12 counter-comments

• Conducted an Open House Discussion on 12 December 2025

Strategic Impact

The recommendations aim to:

• Strengthen 5G expansion

• Improve rural coverage

• Enhance competition

• Safeguard spectrum efficiency

• Support enterprise and private network growth

• Align India's telecom ecosystem with global standards

With spectrum across low, mid and millimetre wave bands being made available, the forthcoming auction is expected to shape India's digital connectivity landscape for the next decade.

The full recommendations are available on TRAI's website.