REGULATORY · COMPETITIVE · INDIA
India 5G spectrum auction terms (reserve prices, bands, and insolvency-held spectrum)
Change
India’s telecom regulator Trai cut 5G spectrum reserve prices by 7–37% across bands for upcoming auctions, proposed selling ~11,789.15 MHz across nine bands (₹2.10 lakh crore reserve), urged DoT to reclaim Aircel/Reliance Telecom/RCom spectrum in insolvency for re-auction, and set new lower pricing plus a 4-year payment moratorium for the 600 MHz band while keeping upper 6 GHz reserved for telecom but off the next sale.
Why it matters
Trai’s reserve price cuts (7–37%) and its shift to 60% of average valuation for some fully-unsold band-circle combinations reduce the upfront cost baseline for bidders in the next 5G spectrum auction. The regulator also introduced a new, sharply reduced price for 600 MHz and allowed an additional four-year moratorium on spectrum charges for that band, changing cash-flow timing for any buyer despite the band’s longer validity. Trai asked DoT to initiate action to take back spectrum held by Aircel, Reliance Telecom and Reliance Communications (all in insolvency) and place it in the upcoming auction, which could expand auctionable supply if executed. Separately, Trai recommended the upper 6 GHz remain reserved for telecom use but not be offered in the forthcoming auctions, constraining near-term access to that capacity.
Implications
- • Lower reserve prices reset bid floors across 5G bands for the next auction
- • 600 MHz terms change: new lower price plus 4-year charge moratorium alters cash timing
- • If reclaimed, insolvency-held spectrum could increase supply available in the auction
- • Upper 6 GHz remains unavailable for purchase in the forthcoming auction despite reservation
Who is affected
- • Indian mobile network operators and prospective new telecom entrants
- • Department of Telecommunications (DoT) and India’s spectrum-auction revenue planning
- • Insolvency estates/creditors of Aircel, Reliance Telecom, Reliance Communications
- • Device and network equipment vendors tied to 600 MHz and other band deployments
Source
Read full article on Economic Times →
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