TRAI sets higher spectrum prices for 700MHz band

The telecom regulator recommended a starting price of Rs. 11,485 crore a unit for 700 MHz band, which invited protests from telcos. According to reports, TRAI plans to conduct the largest ever spectrum auction this season, which could generate almost Rs 544,000 crore for the government.

Telecom Regulatory Authority of India (TRAI) has set a higher-than-expected base price for 700 MHz band in the next round of auctions likely to be conducted around May-June 2016.

TRAI issued recommendations on 'Valuation and Reserve Price of Spectrum in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands'.

The telecom regulator recommended a starting price of Rs. 11,485 crore a unit for 700 MHz band, which drew protests from telcos. As per reports, TRAI plans to conduct the largest ever spectrum auction this season, which could generate almost Rs 544,000 crore for the government.

The higher base price base makes 700 MHz band the most expensive band ever. Considered as most efficient for 4G services, the regulator, has reportedly, allocated a 5 MHz block size for the auction.

TRAI was quoted as saying, "The 700 MHz spectrum band is a lower frequency band and has better propagation characteristics compared with other high-frequency spectrum bands. This spectrum band is considered as premium spectrum band and is most suitable for LTE."