Cabinet approves telecom spectrum auctions at base price of Rs 96,317.65 crore

The Union Cabinet on Thursday approved auctions in eight spectrum bands for mobile phone services at a base price of Rs 96,317.65 crore.

Spectrum, held by certain companies undergoing insolvency process, that are expiring this year, will also be put on auction.

"All the available spectrum in 800, 900, 1800, 2100, 2300, 2500, 3300 MHz and 26 GHz bands will be put on auction."

An official statement said, "As recommended by TRAI, the reserve prices for various bands have been revised using suitable indexation."

India’s 5G roll-out: Important points

• Prime Minister Narendra Modi launched 5G services in India on October 1, 2022.
• More than 4.2 Lakh BTSs have been deployed in 14 months, covering 740 districts.
• This has been the world’s fastest roll-out of 5G services anywhere in the world.
• More than 13 crore subscribers are using 5G services. India is now world’s second largest 5G ecosystem.
• Median mobile download speed has increased to 91 Mbps. India’s rank in global mobile speeds has significantly improved from 113 (October 2022) to 22 (December 2023).
 
To further improve connectivity for telecommunication users and enhance safety of railway/metro passengers, Union Cabinet took following decisions —

 
Spectrum Auction:

• All the available spectrum in 800, 900, 1800, 2100, 2300, 2500, 3300 MHz and 26 GHz band will be put to auction.
• Spectrum held by certain companies undergoing insolvency is expiring in 2024 on completion of the term. This spectrum will also be put to auction.
• As recommended by TRAI, the reserve prices for various bands have been revised using suitable indexation. Reserve price of this spectrum is Rs. 96,317.65 crore.

 
Spectrum for safety of railway/metro passengers:

• Government had earlier assigned 5 MHz spectrum in 700 MHz for Indian Railways for deployment of Kavach – automatic train protection system.
• Government had provisionally assigned 5 MHz spectrum in 700 MHz band for National Capital Region Transport Corporation.
• It has been decided that this 5 MHz spectrum will be assigned to multiple regional and urban rail-based transit systems.
• Considering the additional requirement for national rollout of Kavach, additional 5 MHz in 700 MHz spectrum will be reserved for Indian Railways.
• This will improve passenger safety and operations of these transportation systems.

 
Spectrum reforms:

• Spectrum is used for various purposes such as space communications, broadcasting, defence, mobile telephony, etc.
• As technologies evolve, the spectrum usage may need to be revised.
• A committee will be set up chaired by Cabinet Secretary to finalise plan for re-farming of certain spectrum bands. The committee will have representatives from all relevant stakeholders.

(With Agency Inputs)