The Department of Telecommunication has asked the Cabinet to modify its earlier decision to allow telecom operators to acquire spectrum for a 30-year period.

Sources in the know told BusinessLine that in the key proposals submitted for the Cabinet’s review, the DoT has said that spectrum validity should be for 20 years. Ownership of spectrum for 30 years was one of the key tenets of the extensive telecom reforms announced by the Government in September 2021. The Telecom Regulatory Authority of India, in its recent recommendations, had suggested different pricing for 20 years and 30 years but had left the final decision to the DoT. Telecom operators were in favour of getting spectrum for 30 years but at the value arrived at by TRAI for 20 years.

Sources also told BusinessLine that other salient points proposed by the DoT for the approval from the Cabinet include reserving 5G spectrum for BSNL, 10MHz in the 600MHz band, 40MHz in the 3300 MHz band and, 400MHz in the 26 GHz band.

No reduction in reserve price

“DoT will also be accepting TRAI’s recommendation on reserve prices for 5G spectrum,” the source said. 

DoT has proposed that a total of 72,097.85 MHz of spectrum worth ₹4,31,604.95 crore be put for auction. According to sources, an additional 34.6MHz has been added by the DoT in the crucial 800 and 900MHz band which are essential for permeation of 5G over long distances into rural areas.  Spectrum the 600MHz, 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 2500MHz, 3300MHz and 26 GHz band should be put for auction as per DoT. 27.5 to 28.5 GHz (satellite band) band has been sent back to TRAI for further deliberation on whether it should be auctioned for satcom services.

The Cabinet is likely to look at these proposals by the DoT next Wednesday, after they were unable to make the approvals today. From the date of the Cabinet approval, it would take at least 45 days to hire the agency (auctioneer), prepare the terms and conditions of the auction, issue the notice inviting applications (NIA) and conduct meetings with the stakeholders. 

Private networks

With the Cabinet likely to peruse the DoT’s proposals soon, there is finally going to be clarity on when 5G auctions will be conducted.  The other key aspect that the Cabinet will decide on is whether to consider the allocation of spectrum directly to enterprises. The battle on how the spectrum should be allocated for private networks has been a major cause of delay as big tech companies and telcos fought it out. Telcos want a monopoly in dispensing private network services, or leasing spectrum to enterprises, meanwhile entities such as TCS and Tech Mahindra want spectrum to be allocated to them as well.