India's Spectrum Auction: A Game Changer for Telecom

TRAI has proposed auctioning the entire available radiowave spectrum with reduced barriers to entry and a uniform spectrum cap to promote competition. New guidelines focus on reclaiming spectrum from insolvent companies, incentivizing new operators, and bridging the digital divide through coverage expansion into underserved areas.

The Telecom Regulatory Authority of India (TRAI) unveiled a comprehensive plan to reshape the telecom landscape by recommending the auction of the entire available radiowave spectrum. New policies include lower entry barriers for startups and a consistent 35% spectrum cap to maintain competitiveness.

To further stimulate industry growth, TRAI has suggested halving the net worth criteria for new entrants, making it easier for them to participate in forthcoming auctions. The authority is also urging the Department of Telecommunications to reclaim spectrum from companies facing insolvency to include them in future auctions.

An incentive plan, 'coverage-for-discount', aims to expand connectivity into remote regions. Successful bidders can reduce their auction costs by deploying new networks in identified 'coverage holes', fostering telecom expansion and digital inclusivity. These recommendations are crucial for advancing 5G networks and digital integration across India.

(With inputs from agencies.)