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As the Telecom Regulatory Authority of India (Trai) on Tuesday conducted an open house discussion on the upcoming spectrum auction, the clear divide between telecom operators and satellite players came to the fore around the millimetre wave band, particularly allocation of 27.5 GHz to 28.5 GHz. While Reliance Jio and Vodafone Idea reiterated that all the spectrum should be auctioned, Bharti Airtel sided with satellite players in reserving 27.5 GHz to 28.5 GHz for satellite services. Apart from this, there was division in the telecom industry around E band spectrum. Bharti Airtel supported E band bundling with access spectrum for auction, a move which was opposed by Reliance Jio as it may affect valuation of spectrum.
The open house discussion, which continued for the whole day, deliberated on the comprehensive list of 74 questions around the upcoming 5G spectrum auction for 526-698 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz and 24.25-28.5 GHz bands. Apart from the difference of opinion between satellite players, broadcasters also highlighted their concerns around the 3300-3670 MHz spectrum bands.
A representative from Zee talked about interference with broadcasters if all the spectrum in the 3300-3670 MHz band is auctioned for 5G. He questioned that there was no national frequency allocation plan regarding utilising this spectrum for 5G, so how come it is being auctioned. The representative stressed that cable and TV services should not be disrupted due to 5G. Trai asked the representative to submit supporting documents regarding interference with broadcasters in the band.
Further, there was immense debate around allocation of 27.5-28.5 GHz band spectrum. While various satellite players as well as their associations stressed that the spectrum should be allocated administratively, Reliance Jio and Vodafone Idea called for auction. Satellite players said that 5G in millimetre wave is too costly and its not good for coverage also. But Reliance Jio countered that many countries have already auctioned millimetre wave spectrum for 5G and India should also do so.
Internet service providers requested Trai to allow them participate in the upcoming auction. On the pricing front, all the operators were unanimous in their demand to cut reserve prices. Telecom operators are seeking a cut of more than 90% in the reserve price for the upcoming auction, with no upfront payment and a moratorium of 5-6 years. The amount of spectrum can be recovered in 24 years after the moratorium period. The authority on its part asked the telcos to submit clear proposals regarding reserve price and how international practices can be applied for arriving at the reserve price per circle.
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