TRAI’s Recommendations on Upcoming Spectrum Auction
The Department of Telecommunications (DoT) in India has taken significant steps to prepare for the upcoming spectrum auction. On August 2, 2023, the DoT requested the Telecom Regulatory Authority of India (TRAI) to provide recommendations on various aspects of the auction process. This includes the applicable reserve price, band plan, block size, and the quantum of spectrum to be auctioned across multiple frequency bands. The bands in question range from 600 MHz to 43.5 GHz, covering a wide spectrum of telecommunications needs.
In response, TRAI has initiated a consultation process to gather insights from stakeholders. This article delves into the key recommendations made by TRAI regarding the auction of frequency spectrum, particularly focusing on the 37-37.5 GHz, 37.5-40 GHz, and 42.5-43.5 GHz bands.
TRAI’s Consultation Process
On September 1, 2023, TRAI responded to the DoT’s request, reiterating its earlier recommendations from April 11, 2022. TRAI suggested that all available spectrum in the existing bands should be auctioned with the same band plan and block size as before. Furthermore, TRAI announced its intention to consult stakeholders regarding the new frequency bands, specifically the 37-37.5 GHz, 37.5-40 GHz, and 42.5-43.5 GHz bands.
To facilitate this, TRAI issued a consultation paper on April 4, 2024, aimed at gathering comments and counter-comments from stakeholders. The response was robust, with 12 stakeholders submitting comments and four providing counter-comments. An Open House Discussion was held virtually on July 10, 2024, allowing for a comprehensive exchange of ideas and concerns regarding the auction process.
This collaborative approach is crucial for ensuring that the auction process is transparent and considers the diverse perspectives of all stakeholders involved in the telecommunications sector.
Key Recommendations for Spectrum Auction
Based on the feedback received during the consultation process, TRAI has finalized its recommendations for the auction of the 37-37.5 GHz and 37.5-40 GHz frequency ranges. The recommendations include several critical points:
- Auction of Specific Frequency Ranges: TRAI recommends that the frequency spectrum in the 37-37.5 GHz and 37.5-40 GHz ranges be included in the upcoming auction. However, due to the lack of a device ecosystem for the 42.5-43.5 GHz range, it is advised that this band not be auctioned at this time.
- Band Plan and Block Size: The band plan n260 with a Time Division Duplex (TDD) configuration is recommended for the 37-40 GHz frequency range. The auction should be conducted with a block size of 100 MHz, valid for 20 years.
- Spectrum Cap and Roll-Out Obligations: TRAI suggests a spectrum cap of 40% of the total spectrum put to auction for the n260 band. The minimum roll-out obligations for this band should align with those prescribed for the 26 GHz band, ensuring equal obligations for all telecom service providers.
- Participation of Various Service Providers: In addition to access service providers, TRAI recommends allowing Internet service providers and Machine-to-Machine (M2M) service providers to participate in the auction. This inclusion aims to foster competition and innovation in the telecommunications sector.
Financial Aspects and Reserve Prices
The financial framework for the auction is also a crucial aspect of TRAI’s recommendations. The authority has proposed two payment options for the assignment of spectrum in the 37-37.5 GHz and 37.5-40 GHz bands. These options include an upfront payment and a plan for 20 equal annual installments.
Moreover, TRAI has outlined the recommended reserve prices for various Local Service Areas (LSAs). For instance, the reserve price for Andhra Pradesh is set at Rs. 49 lakh, while for Assam, it is Rs. 9 lakh. These prices vary based on the category of the LSA, reflecting the economic conditions and demand in different regions.
The availability of frequency spectrum in the 37-37.5 GHz and 37.5-40 GHz ranges is expected to enable telecom service providers to establish high-capacity, low-latency communication networks. This advancement will support advanced use cases, enhancing the overall telecommunications infrastructure in India.
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