TRAI Recommends Auction of Full IMT Spectrum Across Key Bands, Calls for Swift Reclaim of Insolvency-Held Airwaves

TRAI Issues Fresh Recommendations for Upcoming Spectrum Auction​

New Delhi, February 24: The Telecom Regulatory Authority of India on Tuesday released detailed recommendations for the upcoming auction of radio frequency spectrum identified for International Mobile Telecommunications IMT services.

The recommendations follow stakeholder consultations and further regulatory analysis, outlining the framework for auctioning spectrum across multiple frequency bands.

TRAI has recommended that the entire available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands should be put up for auction in the forthcoming exercise.

Reclaiming Spectrum Under Insolvency Process​

In a significant move, TRAI has advised the Department of Telecommunications to immediately initiate action to reclaim spectrum held by telecom service providers undergoing corporate insolvency resolution under the Insolvency and Bankruptcy Code, 2016.

The reclaimed spectrum should then be included in the upcoming auction, according to the regulator’s recommendations.

Auction Format and Validity Period​

TRAI has proposed that spectrum in IMT-identified bands be auctioned on a Telecom Circle or Metro Area basis, with a validity period of 20 years.

The regulator has recommended continuing with the Simultaneous Multiple Round Auction SMRA format for the spectrum sale process.

Reduced Net-Worth Requirement for New Entrants​

To encourage broader participation, TRAI has recommended lowering the net-worth requirement for new entrants in the IMT spectrum auction.

The requirement should be reduced from Rs 100 crore per Licensed Service Area to Rs 50 crore per Licensed Service Area. For Jammu and Kashmir and North East Licensed Service Areas, the threshold should be reduced from Rs 50 crore to Rs 25 crore each.

Contiguous Allocation and Time-Bound Harmonization​

TRAI has emphasized that telecom service providers should be assigned spectrum in a contiguous manner to ensure efficient usage.

The Department of Telecommunications has been advised to carry out spectrum harmonization immediately after the auction and complete the process within six months from the conclusion of the auction.

Existing Band Plans to Continue​

The regulator has recommended that the existing band plans adopted for the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands should continue in the upcoming auction.

Spectrum Caps Recommended​

TRAI has also proposed specific spectrum caps to maintain competition and balanced distribution.

A cap of 35 percent on the total spectrum available for access services in the 600 MHz band has been recommended, rounded off considering the block size in the band.

Additionally, a 35 percent cap has been recommended on the combined spectrum available for access services in the 700 MHz, 800 MHz, and 900 MHz bands. This includes spectrum assigned to private telecom service providers as well as spectrum assigned to or reserved for public sector operators for providing access services.

Incentivizing Network Expansion in Uncovered Areas​

The regulator has further recommended launching a scheme to incentivize access service providers to expand mobile network coverage in areas that currently lack mobile connectivity and are not covered under the Universal Service Obligation Fund, now renamed as Digital Bharat Nidhi DBN.

The recommendations collectively lay the foundation for the next phase of India’s IMT spectrum allocation, covering pricing structure, eligibility norms, competition safeguards, and network expansion objectives.