BIF: 5G spectrum auction quantum is inadequate and costly

Date:

Trending

- Advertisement -

NEW DELHI: The quantum of 5G spectrum on auction in the country is inadequate and pegged at a very high reserve price which is approximately 5 to 6 times higher than in other countries and needs urgent revision, a broadband industry association said.

“Quantum of 5G spectrum on auction inadequate and at a very high reserve price. Current reserve price of 5G spectrum is too high – approximately 5 to 6 times higher than other countries and needs urgent revision. The unsold mobile spectrum has cost India Rs 5.4 lakh crore in economic loss since 2010. Forty per cent of spectrum since the 2010 auctions has remained unsold”, Broadband India Forum (BIF) President T.V. Ramachandran said in a statement.

- Advertisement -

The BIF urged government to “ensure spectrum adequacy and reasonable reserve price for successful 5G auctions and is awaiting DCC’s (Digital Communcations Commission) action towards an enabling policy decision for strengthening the country’s digital India aspirations.”

- Advertisement -

“The current reserve price of 5G spectrum is too high – about 4 times higher than other countries when compared on ARPU (average revenue per user) adjusted cost per MHz and needs urgent revision”, he said.

At the last auctions held in October 2016, which was India’s largest spectrum sale, more than 1,300 MHz of radio spectrum, that is around 59 per cent, remained unsold, leading to significant unrealised potential.

- Advertisement -

Taking all the six auctions held since 2010, only about 60 per cent spectrum has been sold.

According to the statement, India had 762 million active mobile connections in 2016 served by over 3,800 MHz of spectrum allocated to licensees, which indicates that the idle spectrum lying with the government could enable connectivity for roughly 278 million additional active connections, which correspond to 21 per cent of the country’s total population.

“If 10 per cent increase in tele-density leads to an increase of 1.9 per cent in GDP (applying the results of the ICRIER economic impact study), the financial cost of this idle spectrum can then be estimated to be Rs 5.40 lakh crore, or over 160 per cent of the financial benefit of Rs 3.30 lakh crore from all spectrum auctions so far,” BIF said.

“Due to our very high reserve prices in past auctions, we have accumulated huge unsold spectrum and thereby lost to the nation and the public as much as Rs 5.40 lakh crore and consumers have lost out on quality of services,” Ramachandran said.

According to the broadband body, India requires more spectrum to support surging data traffic. India now has the highest data traffic in the world but has one of the lowest allocations.

“Many developed nations across the world have assigned spectral resources far in excess of the quantum that is available to Indian operators. India has 185 MHz of spectrum, much far behind 370 MHz in the United States, 296 MHz in France and 260 MHz in China.

“For a country with a large population, highly inadequate fixed line connectivity and rapidly growing mobile usage, th is is an enormous problem that constrains the coverage as well as quality of services,” he added.

Telecom companies have said the prices suggested by regulator Trai are unsustainable and too high.

Pointing to low base prices for 5G airwaves on a per MHz basis set by countries such as South Korea, the telcos say India’s pricing is seven times higher.

“We’ve made it clear that for 3.5 GHz spectrum, the reserve prices indicated by Trai in the ballpark of Rs 50,000-55,000 crore for 100 MHz, are prices we can’t afford and they’re exorbitant,” a senior Bharti Airtel official has said.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Closing India’s Employability Gap with Tech-First Hiring Models

India’s employability challenge is often framed as a skill gap problem. But that’s only half the story. The real gap lies in reach and engagement. As...

Vanguard Group Reports Nvidia Stock Below 5 Percent

The Vanguard Group has reported that it now holds less than a 5% stake in NVIDIA Crop (NASDAQ:NVDA), following an internal realignment of its business structure. The disclosure was made in a regulatory filing dated March 13, 2026, which showed that Vanguard no longer reports...

Vanguard Reports Stake Below 5% in Google’s Alphabet

The Vanguard Group has reported that it now holds less than a 5 percent...

Vanguard Group Reports Ownership Below 5% in Apple Following Internal Realignment

The Vanguard Group has reported that it now holds less than a 5% stake...

NIELIT, SKD University Sign MoU to Expand AI, Cyber Security and Data Science Education in Rajasthan

The National Institute of Electronics and Information Technology (NIELIT) and Shri Khushal Das University...

VES College of Architecture’s Dr. Prof. Anand Achari on Preparing Students for Real Urban Challenges with AI and Design Thinking

Speaking with TechGraph, Principal of VES College of Architecture (VESCOA), Dr. Prof. Anand Achari,...

How NBBL’s New Technology Stack Is Transforming the Future of Payments

India’s digital payments ecosystem has reached a scale that very few countries in the...

NVIDIA CEO Jensen Huang Reports 437,908 Shares Disposal at $181.93 Each

Jensen Huang, President and CEO of Nvidia Corporation (NASDAQ:NVDA), has reported a series of...

Concord Control Systems Secures INR 84 Cr Order From Indian Railways For Loco Wireless Control Systems

Concord Control Systems Limited (BSE: CNCRD), a manufacturer of embedded electronic systems and a critical electronic solutions company, has secured an order worth ₹84.68...

Buy vs Build in the AI Era: Why Enterprises Are Rethinking Technology Strategy

Every decade or so, a shift arrives that forces enterprises to rethink how they...

The Future of Shopping: How Apps Are Merging Beauty with Basics

Shopping in India is evolving very fast. Instead of opening different apps for different...

LTM partners with the Indian Institute of Creative Technologies to strengthen creative technology skilling

LTM, a Larsen & Toubro Group company, and the Indian Institute of Creative Technologies...

Beyond Liveness: Building Cryptographically Verifiable Biometric Integrity for the Enterprise

Indian Enterprises are facing a strategic inflection point in the volatile global digital markets...

Deeptech Startup Newtrace Secures $6.3 Mn in Pre-Series A Round

Bengaluru-based deeptech startup Newtrace has raised $6.3 million (INR 56.93 crore) in a pre-Series A funding round led by HDFC Bank and Mitsui Sumitomo...

Mozark Snaps $40 Mn In Series B Round Led by IFC and RMB Capitalworks

Mozark, a Singapore-based company specializing in digital experience testing and measurement, has raised $40 million in a Series B round led by International Finance Corporation (IFC) and RMB Capitalworks, with participation from existing investor Kalaari Capital. The company will use the fresh funding to strengthen...

Role of Agentic AI in transforming the real estate landscape

The real estate industry involves a high-stakes ecosystem driven by shifting supply-demand dynamics, regulatory...

How to Extend Vehicle Lifespan With Proper Maintenance

Extending the lifespan of your vehicle is not only cost-effective but also beneficial for...

Why India’s Next Cloud Boom Is Coming from Tier-2 Cities

Historically, the story of India's cloud adoption has been focused on the metro cities...

Is India Ready for a Smart Treasury? A Look at Adoption Barriers and Opportunities

Across India, businesses hold thousands of crores in current accounts that earn no interest....

Fraud or Finance? How to Identify Trustworthy Digital Lending Platforms

Digital lending has changed how credit flows in India. According to the IBEF, fintech-led...

What Modern Enterprises Can Expect from CPaaS Platforms in 2026

Over the past two decades, enterprise communication technology has advanced rapidly. Yet the gap...

Amazon India Opens 1.1 Million Sq Ft Campus in Bengaluru

Amazon announced the opening of its second-largest office in Asia with the launch of...

B2B Logistics platform Mojro Draws $3Mn for IAN Alpha Fund & Others

Bengaluru-based B2B logistics platform Mojro has raised $3 million in a Series A funding...

Inflection Point Ventures leads INR 4 Cr seed round in Fintech Startup Roopya

West Bengal based no-code ‘lending-as-a-service’ platform Roopya has raised INR 4 Crore in a...

LTM partners with the Indian Institute of Creative Technologies to strengthen creative technology skilling

LTM, a Larsen & Toubro Group company, and the Indian Institute of Creative Technologies...

Geospatial Intelligence Is Powering India’s Next Wave of Smart Infrastructure

Every day, nearly 500 families in India receive news that will change their lives...

Understanding Common Car Problems and How to Prevent Them

Keeping your vehicle in top condition requires more than just regular washing or occasional...

Nebius Gets Approval for 1.2 GW AI Factory Campus in Missouri

Nasdaq-listed AI company, Nebius (NBIS), said the Independence City Council has approved a Chapter...

From vineyard to bottle: How blockchain improves trust and sensing in the wine value chain

The wine sector faces increasing consumer demand for transparency, authenticity, and reliable information about...

Beyond Liveness: Building Cryptographically Verifiable Biometric Integrity for the Enterprise

Indian Enterprises are facing a strategic inflection point in the volatile global digital markets...

B2B Logistics platform Mojro Draws $3Mn for IAN Alpha Fund & Others

Bengaluru-based B2B logistics platform Mojro has raised $3 million in a Series A funding...

Peak XV Partners Closes $1.3 Bn in Fresh Capital to Back Startups Across India and APAC

Peak XV Partners (formerly Sequoia Capital India & SEA) has closed $1.3 billion in...

Inflection Point Ventures leads INR 4 Cr seed round in Fintech Startup Roopya

West Bengal based no-code ‘lending-as-a-service’ platform Roopya has raised INR 4 Crore in a...