DoT body refers back key 5G spectrum, pricing recommendations to Trai

The Digital Communications Commission (DCC), which met Friday, is sending a reference back on key recommendations of the Telecom Regulatory Authority of India (TRAI) on 5G spectrum and pricing as part of its move to hasten the process of auctioning. Sources say the regulator is expected to respond to the queries within a week or two and a reference already being worked on by DoT could be sent today, or by Monday.  

Speed is critical as the government has made it clear that it wants to begin the auction in June. Sources say Prime Minister Narendra Modi is keen to dedicate the launch of 5G services on this Independence Day. Under the TRAI Act, any changes suggested by the DoT in TRAI’s recommendation have to be referred back to the regulator for its reconsideration. However, after receiving a recommendation once again, it is up to the government to take the final decision. In this case it is referred to the cabinet for clearance.      

The DCC, apart from recommending that the spectrum be given for 20 years instead of the earlier 30 years which they had pegged to the regulator’s base price, has also cleared the DoT committee's recommendation that the spectrum between 27.5-28.5 GHz in the millimetre band be kept out of the upcoming auction and not be given for mixed use for either telcos or satellite operators as recommended by the regulator. The fate of the spectrum, sources say, should be decided when a comprehensive policy on satellite operators is put in place.

The DCC has also suggested a reduction in the conditions that have to be met under the minimum roll-out obligation plan suggested by the regulator for non-metros. Operators have vehemently opposed the regulator's recommendation that there should not be any such roll-out obligation at all.

The DoT committee's recommendation that the contentious E band should be auctioned and a reference be made on what should its base price be to the regulator has also been accepted by the DCC. However, telcos will continue with this backhaul spectrum required for connecting towers till a final decision is taken on it.

The DCC has also earmarked spectrum bands which will be reserved for Bharat Sanchar Nigam Ltd/MTNL for its future foray into 5G. These, say sources, include 40 Mhz between 3630 to 3670 MHZ in the key 3.5 GHZ band, another 400 MHZ in the millimetre band between 24.25 GHz to 24.65 GHz and also around 10 MHz in the 600 Mhz band. The state-owned company of course has to pay the same price as the highest bidder to get the spectrum.

Telcos have been unhappy that the base price fixed by the regulator for a period of 30 years is virtually the same as what they had recommended in 2018 at Rs 492 crore for a pan-India 1Mhz spectrum. That is because of the regulator's formula that 20 years' base price, which they have recommended, be multiplied by 1.5 for a 30 year license period. However, for a 20 year license period the regulator has cut the base price of the 3.5 GHz band sharply by 36 per cent to Rs 317 crore for pan India 1MHZ of spectrum from what it had recommended earlier. On the other hand the government, as part of its telecom package had announced that it would from now on extend the licensing period to 30 years.