Trai faces tough call before spectrum auction amid operators' rift over usage, costs, new frequencies

Core Viewpoint - The Telecom Regulatory Authority of India (Trai) is facing significant challenges regarding the upcoming spectrum auction, with major disagreements among Big Tech companies and telecom operators, particularly Airtel and Jio, over the use and pricing of radio spectrum [1][2]. Spectrum Usage and Timing - Disputes center around the allocation and pricing of critical spectrum bands, especially the 6 GHz band, which is essential for future 5G/6G networks and superfast Wi-Fi [3][4]. - Big Tech companies argue that the 6 GHz band should not be auctioned in the upcoming round due to a lack of technical and commercial readiness [4][5]. - The Manufacturers' Association for Information Technology has requested Trai to delay the auction of the 6 GHz band until the global ecosystem is more developed [6][7]. Auction Dynamics - Reliance Jio advocates for the immediate auction of the entire 1200 MHz of the 6 GHz band, emphasizing its importance for India's 5G/6G ambitions [8]. - Currently, only 400 MHz of the 6 GHz band is available for immediate auction, with the remaining portions expected to be available only by December 2030 [9]. Pricing Issues - Telecom operators are calling for significant reductions in the reserve price for the upcoming spectrum auction, while Jio opposes any price cuts for existing bands [12][13]. - Airtel argues that lower reserve prices are necessary to facilitate network expansion and improve service quality, while Jio warns that price reductions could undermine investor confidence [14][15]. Auction Performance and Trends - The June 2024 auction saw 10,522.35 MHz of spectrum offered at a reserve price of ₹96,238.45 crore, with only 141.40 MHz sold [16]. - In 2022, prior to the launch of 5G services, operators acquired 51,236 MHz of spectrum worth over ₹1.5 trillion from a total offering of 72,098 MHz valued at ₹4.3 trillion [17]. Spectrum Caps - Jio is advocating for the elimination of spectrum caps, arguing they are outdated and hinder market growth, while Airtel supports maintaining and even reducing the caps to ensure competitive balance [17][18].