Trai Recommends Cut in 5G Price is Positive Not Transformational

According to some industry analysts, Trai's recommendation to lower the base price of the 5G spectrum may be gradual positive and non-transformative, while bid strength at future auctions may be moderate or muted.

The expert said that the reduction proposed in pricing, though largely on expected lines, is not in sync with the 90% drop that the industry has been asking for. 

Emkay Global said reductions were proposed at the 3300-3670 MHz and 700 MHz bands but said, "reductions are widespread on expected lines, and is less than the industry demands of about 90%." 

Trai recommended about a 39% reduction in the reserve or floor price for the sale of spectrum for mobile service, including the latest 5G offering, as it looked to match revenue expectations with the industry’s paying capacity. 

For 5G prime frequencies in the 3300-3670 MHz band, all of India's reservation price is Rs.317 crore per MHz total, which is more than 35% lower than the previously posted Rs.492 crore per MHz.