Recommended Spectrum Prices are backed by Scientific Calculations

Amidst telecom industry concerns over less than expected cut in spectrum prices, the Chairman of the Telecom Regulatory Authority of India (TRAI), PD Vaghela justified the spectrum prices. He told that Trai’s recommendation to decrease the spectrum prices by 39% is rational, attractive, and most importantly backed by "scientific calculations". While interacting with PTI, Mr. Vaghela told that considering the huge market potential of the 5G market, he is optimistic about Telecom companies' participation in this auction.

The chairman of Trai is hopeful that the recommended reserve prices will attract bidders in the forthcoming auction. In view of the launch of 5G services in the future, Trai, on Monday, recommended a mega auction plan valued at over Rs 7.5 lakh crore at the base price across multiple bands for radiowaves allocated over 30 years. However, industry body COAI has expressed its disappointment over the regulator’s recommendation and termed the spectrum pricing suggested by the regulator as "too high". Mr. Vaghela said: "Trai takes the business of calculation of valuation seriously, and on that basis, we have arrived at rational reserve prices. The prices we have given have been set at 70 percent of valuation.”