Spectrum Auction Set for Major Shift: TRAI Proposes New Norms
The Telecom Regulatory Authority of India (TRAI) has recommended a major spectrum auction worth Rs 2.1 lakh crore, aiming for competitive pricing and greater participation by new entrants. This includes reclaiming spectrum from insolvent telecom companies and setting a spectrum cap to protect market competition.
- Country:
- India
The Telecom Regulatory Authority of India (TRAI) has unveiled recommendations for an extensive auction of the entire 11,790 MHz radiowave spectrum, valued at around Rs 2.1 lakh crore, if completely acquired at the reserve price, according to key sources.
Sources revealed that the upcoming spectrum auction is poised to be 19 per cent cheaper than the last auction in 2022, creating an enticing environment for bidders. This approach is set to encourage more participation by slashing the net worth criteria for new entrants, which is substantially lower than previous stipulations.
TRAI has suggested all available spectrum be auctioned, highlighting a uniform 35 per cent spectrum cap to ensure competitive balance in the telecom sector and advocated for the Department of Telecommunications (DoT) to reclaim spectrum from companies under insolvency.
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