TRAI begins consultation on pricing, terms for new spectrum bands

Telecom regulator TRAI on Thursday sought stakeholder views on the auction of new three spectrum bands-- 37–37.5 GHz, 37.5–40 GHz and 42.5–43.5 GHz for mobile services, as it released a consultation paper to discuss issues related to pricing, validity and payment terms of these radiowaves.

This is the first time three spectrum bands in 37-37.5 Ghz, 37.5-40 Ghz and 42.5-43.5 Ghz are being proposed for the auction. The proposal will make available 4,000 Mhz spectrum for 5G services in the future.

These blocks are different from the bands -- 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz which that be put on the block in the upcoming spectrum auctions scheduled for June 6.

"The Telecom Regulatory Authority of India (TRAI) has today released a Consultation Paper on 'Auction of Spectrum in 37-37.5 GHz, 37.5-40 GHz and 42.5-43.5 GHz bands Identified for IMT," an official release said.

TRAI, in the consultation paper, has sought industry's opinion on various nuances of the auction of spectrum in these new bands, including pricing, validity, preferred block size, spectrum caps, rollout obligations, and other terms and conditions.

In all, 4,000 MHz of frequency spectrum will be available in each Licensed Service Area (LSA) in these ranges. While the 37-37.5 GHz band is for mobile services, the other two bands 37.5-40 GHz and 42.5-43.5 GHz are for mobile and Satellite Gateway links.

TRAI has asked the industry to submit written comments on the issues raised in the consultation paper by May 2, 2024, and counter-comments by May 16, 2024.

"Whether the entire available spectrum in each of the frequency ranges 37-37.5 GHz, 37.5-40 GHz, and 42.5-43.5 GHz, should be put to auction for IMT...In case you are of the opinion that any of the frequency ranges viz. 37-37.5 GHz, 37.5-40 GHz, and 42.5-43.5 GHz should be put to auction at a later date, what should be the timelines for auctioning of such frequency bands for IMT," it asked.

TRAI also asked if spectrum in these frequency ranges should be assigned for a validity period of 20 years, as prevalent in the existing frequency bands, or for a shorter validity period.

Other questions thrown up by TRAI in the consultation paper are whether these radiowaves should be assigned for the existing Licensed Service Areas (LSAs) for access service (that is telecom circles/metros), or it should be assigned for smaller service areas.

"Whether the value of spectrum in 37–37.5 GHz, 37.5–40 GHz and 42.5–43.5 GHz spectrum bands be derived by relating it to the auction determined price/value of spectrum in any other band by using spectral efficiency factor," it questioned.

The sector regulator also sought stakeholder opinion on what should be a method of valuation of the spectrum and "should international spectrum prices that is the auction determined price/ reserve price of other countries in 37 – 37.5 GHz, 37.5 – 40 GHz and 42.5 – 43.5 GHz spectrum bands serve as a basis for the purpose of valuation of these bands".