TRAI Okays 37-40 GHz Spectrum Auction in India

TRAI Gives Green Light for 37-40 GHz Spectrum Auction

The Telecom Regulatory Authority of India (TRAI) has given its approval for auctioning spectrum in the 37-40 GHz band. This spectrum will be available in 22 circles across India, with 3,000 MHz available in each circle. The total value of the spectrum up for auction is estimated at around Rs 17,940 crore.

Spectrum to be Available for 20 Years

TRAI has recommended that the Department of Telecommunications (DoT) conduct the auction and make the spectrum available to telecom operators for a period of 20 years. This move is expected to boost the telecom sector in India.

42.5-43.5 GHz Band Excluded from Auction

While recommending the auction of the 37-40 GHz band, TRAI advised against auctioning the 42.5-43.5 GHz band. The reason given is the current lack of device ecosystem for this particular frequency range. This decision ensures that only usable spectrum is made available.

Spectrum Cap Set at 40%

TRAI has also recommended a spectrum cap of 40% for the 37-40 GHz band. This means that no single service provider can own more than 40% of the total spectrum put up for auction in this band. This is to ensure fair competition and prevent monopolies.

Reserve Price Varies by Circle

The reserve price, the minimum price at which bids are accepted, varies depending on the circle. The highest reserve price per MHz is Rs 76 lakh in Delhi, followed by Rs 67 lakh in Mumbai. The lowest reserve price is Rs 3 lakh/MHz, set for Jammu and Kashmir and the North East circles.

Boosting High-Capacity Networks and Advanced Use Cases

This spectrum auction in the 37-40 GHz range will allow telecom service providers to build high-capacity, low-latency networks. These networks are crucial for supporting advanced technologies and applications like [[5G]], [[AI]], and the [[Internet of Things (IoT)]].

Wider Participation Encouraged

TRAI has also recommended that not just access service providers, but also internet service providers and machine-to-machine service providers be allowed to participate in the spectrum auction. This aims to broaden the participation and create a more competitive market.

Flexible Payment Options Available

Telecom companies will have flexible payment options. They can choose to pay for the spectrum upfront or in 20 equal annual installments. This provides much-needed financial flexibility to the bidders.

This latest news marks a significant development in the Indian telecom market, with the potential to significantly enhance the nation’s [[digital infrastructure]].

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