India’s telecom regulator has suggested major changes to the framework for the next spectrum auction. The goal is to push participation and sharpen competition across the telecom sector.
The Telecom Regulatory Authority of India (TRAI) suggested auctioning all available airwaves across the low-to-high frequency bands and easing entry norms for new market players, including special incentives for the 600 MHz band.
The proposals were submitted to the Department of Telecommunications for implementation ahead of the upcoming bidding round.
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TRAI Recommends Full-Spectrum Auction With Entry Conditions
TRAI has directed the Department of Telecommunications (DoT) to proceed with spectrum auctions covering the 600 MHz to 26 GHz bands under the International Mobile Telecommunications (IMT) framework.
The regulator suggested that all available airwaves in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands be put on sale. To broaden competition, TRAI proposed lowering the net-worth requirements for new entrants. The proposal halves the eligibility threshold from earlier norms for most Licensed Service Areas (LSA), with further reductions in Jammu & Kashmir and the Northeast.
The regulator also recommended that spectrum held by companies under insolvency proceedings be returned to the government and made available in the auction. TRAI advised retention of the Simultaneous Multiple Round Auction (SMRA) format and set a uniform 35% spectrum cap to prevent excessive concentration of airwaves by a single operator.
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600 MHz Band Incentives and Future-Ready Measures
The regulator offered special terms for the 600 MHz band, a low-frequency range prized for wider coverage but left unsold in past auctions, citing weak device ecosystems.
TRAI proposed auctioning the band in 2×5 MHz blocks, with an extended spectrum validity of 24 years and a 4-year delay in the rollout of obligations. It also suggested flexible payment terms, including a moratorium before annual instalments begin. TRAI has flagged the upper 6 GHz spectrum range for future consideration.
