The Telecom Regulatory Authority of India (TRAI) on Monday said it is likely to release a discussion paper on spectrum auctions this week.

The consultation paper on spectrum auction and pricing is “ready” and TRAI hopes to release it this week, RS Sharma, Chairman, TRAI, said on the sidelines of International Telecommunication Union (ITU)-TRAI Asia Pacific Regulators Roundtable.

In April, Sharma had said the consultation process generally takes six months to complete the whole process and therefore, expect recommendations around the same time.

The Department of Telecom had earlier this year sought the regulator’s views on spectrum price for various frequencies, including the premium airwaves in the 700 MHz band that remained unsold in the last auctions held in October.

Even at the end of the auction, only 60 per cent of the spectrum remained unsold (in all 2,354.55 MHz was placed the block), and spectrum worth ₹4 lakh crore in 700 MHz band had found no takers. The government had put airwaves worth ₹5.66 lakh crore for sale in the auction at that time and during the five-day auction, seven telecom companies made commitments of ₹65,789 crore for buying 964.80 MHz of spectrum in various frequency bands.

Meanwhile, the telecom industry has been citing its poor financial health – reporting falling revenue and profitability — to reason that the auctions should be held late next year or early 2019.

According to them, the spectrum prices are too high, apart from the licence fee.

Financial stress Industry body Assocham has also come out with a report on Monday saying that the financial stress on the telecom sector can be reduced to a great extent by considering a reduction in spectrum usage charges and licence fees.

A joint study by Assocham-KPMG said the high reserve price of spectrum may need to be revisited in light of the financial stress which industry faces in the current scenario.

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