TRAI begins consultation on 5G auction, seeks views on private networks

Consultation paper dwells on issues related to spectrum pricing, valuation methodologies, service roll out, cap on holding and upfront payment and moratorium terms for future auctions

The Telecom Regulatory Authority of India has sought industry feedback on regulations for private cellular network and auction of airwaves in 526-698 MHz in its consulation paper on 5G spectrum auction.

The authority released the consultation paper on Tuesday seeking comments on a host of issues related to spectrum pricing, valuation

methodologies, service roll out obligations, cap on holding and upfront payment and moratorium terms for future auctions. In all, the regulator has posed 74 questions and sought comments by December 28.

The exercise comes ahead of the proposed spectrum auction for 5G spectrum by April-May 2022. The government hopes to roll out commercial 5G service at least in a few cities by Independence Day next year.

Spectrum auction was last held in March and airwaves in various bands were sold to the companies. However, around 63 per cent of total spectrum remained unsold in March auction. Apart from the unsold spectrum, frequencies in 526-698 MHz, 3300-3670 MHz (3.3-3.67 GHz) and 24.25-28.5 GHz bands will be proposed for auction for the first time.

While 5G trials currently are underway in the 700 MHz, 3.5 GHz and 26 GHz bands, the department of telecommunications has decided to allocate new frequency bands in 526-698 MHz for 5G services.

The regulator has sought industry view on whether airwaves in 526-617 MHz and 600 MHz should be put up for auction. Among various queries regarding pricing and valuation it has sought to know whether auction determined prices of March 2021 should be taken as the value of spectrum in respective band for forthcoming auction in the licensed service area and whether there is a need to bring any change in valuation methodology. It has also asked whether international benchmarking should be followed with respect to 526-698 MHz and 24.25-28.5 GHz bands since these bands are being put for auction for first time in India and there is no historical data for comparative analysis.

The regulator has also sought industry views on earmarking of spectrum lease  for private cellular networks, lease of spectrum for enterprises and need for changes in policy framework to support such networks which are expected to take shape following the introduction of 5G services.

A private cellular network is basically a local area network that uses cellular technologies to create a dedicated network with unified connectivity, optimized services and a secure means of communication within a specific geographic area

These can be used by industries for automate manufacturing lines, reduce security risks, protect employees from dangerous environments, monitoring and control of assets, predictive performance and condition-based maintenance, digital assistance among others. They can be useful in a wide variety of venue environments, healthcare, education, TRAI said in its consultation paper.