TRAI's Bold Auction Plan: Transforming Telecom with Lower Barriers & Wider Reach

The Telecom Regulatory Authority of India (TRAI) has recommended auctioning all available radiowave spectrum, while lowering entry barriers and enforcing a uniform 35% cap to promote competition. The proposals aim to foster new competition, expand digital connectivity and bridge the digital divide in remote areas.

The Telecom Regulatory Authority of India (TRAI) has put forth an ambitious proposal to auction the entire available radiowave spectrum and establish a uniform 35% spectrum cap. This move is designed to stimulate competition and lower entry barriers for potential newcomers in India's telecommunications sector.

The recommendations include a revised net worth criterion for new entrants and special incentives for expanding coverage in remote areas. Successful bidders can take advantage of price discounts by deploying new 4G or 5G infrastructure in government-identified coverage holes.

To ensure the sale meets technological advances and market demands, TRAI proposes regular valuation exercises and encourages infrastructure sharing to enhance service delivery, particularly in underserved regions. These measures could significantly boost 5G network expansion and bridge the digital divide.

(With inputs from agencies.)