Trai seeks FY27 spectrum auctions, urges DoT to reclaim airwaves under IBC

Trai has recommended FY27 spectrum auctions with lower reserve prices, a 35% spectrum cap, incentives for coverage deployment and retrieval of airwaves from firms under insolvency

Telecom Regulatory Authority of India (Trai) has recommended that the department of telecom (DoT) should conduct the spectrum auctions within FY27. This, it said, would provide telecom companies clarity on network expansion and investment in new technologies.

 

It would also suggest that the government initiates immediate action for taking back and auctioning the spectrum held by companies undergoing insolvency resolution.

 

Trai has suggested that all available airwaves across 600 Mhz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz spectrum bands be put up for sale.

 

The regulator has lowered the reserve prices for most bands from 2024 levels.

 

Proposing a new scheme, Trai said that winning bidders in the auctions would be able to reduce spectrum costs by 10 per cent if they deploy new base stations in so-called ‘coverage holes’.

 

Presently, the Digital Bharat Nidhi fund provides carriers monetary aid for building sites in remote areas.

 

Trai has proposed halving the net worth requirements for new entrants to ₹50 crore per circle, and from ₹50 crore to ₹25 crore for Jammu & Kashmir and the Northeast. This would broaden the playing field.

 

It has also recommended that companies buying airwaves won’t be able to buy more than 35 per cent of the total available spectrum, which will ensure competition in the market.

 

 Trai also suggested keeping out 6 GHz (upper) band — 6425–6725 MHz and 7025–7125 MHz — from auction and re-examine the issue after the outcome of the World Radiocommunication Conference 2027.

 

The regulator has proposed that companies buying 6G spectrum be allowed to conduct trials for four years. For the 600 Mhz band, Trai has proposed a four-year moratorium on payments and delayed rollout obligations to incentivise investment in sub-1 GHz coverage.

 

With recommendation of licences to be granted for 20 years, for 600 MHz band, a 24-year period has been recommended. This, the regulator said, will allow companies to plan for long-term investments as well as broader and better coverage.

 

Trai has also proposed that the process for returning spectrum to the government be simplified. The regulator also proposed setting aside a specific quantum spectrum in the 2300 MHz to 40 GHz bands, for internet service providers, M2M providers and captive non-public networks (CNPNs).

 

For the 600 Mhz band, payment terms have been kept at standard upfront or instalment-based, but an alternative structure was also suggested with 5 per cent upfront payment within 10 days of the demand note.

 

It would be followed by a four-year moratorium, with the remaining dues payable in equal annual instalments over 19 years while protecting the net present value of the bid amount.

 

The regulator has also suggested that the government should reconsider the creation of a separate access network provider authorisation under the unified licence for wholesale network services, fast-tracking digital connectivity infrastructure provider and Cloud-hosted telecom network authorisations under the Telecommunications Act, 2023.

 

The regulator added that for existing bands — including those being put to auction for the first time — a fresh spectrum valuation exercise should be conducted every three years, following a reference to Trai by the government.

 

For auctions conducted in the interim periods, for circles where spectrum put to auction in a previous auction is sold, the auction determined prices accordingly indexed should be used for arriving at the reserve prices for the next auction.

 

For circles where spectrum remains unsold in previous auctions, past recommended reserve price without indexation should be used. 

Auction road map

• Recommends FY27 auctions across 600 MHz–26 GHz bands; cuts reserve prices for most bands
• Offers 10% spectrum cost relief for deploying base stations in coverage gaps
• Halves entry net-worth norms; caps spectrum holdings at 35% of available airwaves