COAI Urges Government to Lower 5G Spectrum Prices

The Cellular Operators Association of India (COAI) is urging the government to lower 5G spectrum auction bid prices. Industry officials argue that telecom operators are yet to recover their investments in 5G infrastructure. The TRAI recommended an auction of 11,790 MHz of spectrum with a slightly cheaper base price than previous years.

In a pressing appeal to the government, the Cellular Operators Association of India (COAI) has called for reduced bid prices in the upcoming 5G spectrum auction. COAI Director General, S P Kochhar, highlighted the industry's struggle to recoup its hefty investments in 5G infrastructure during discussions at the COAI Digicom Summit.

The Telecom Regulatory Authority of India (TRAI) proposed the auctioning of 11,790 MHz across various frequency bands at a base price Rs 2.1 lakh crore, which is 19% cheaper than the previous year's rates. The focus remains on making spectrum investments cost-effective amidst the ongoing 5G rollout.

The government, meanwhile, plans to auction spectrum for mobile services exclusively, while satellite communication services are allocated non-competitively. Officials stress the high cost of spectrum as the primary capital expenditure, hoping for government support until operators begin realizing a return on investment.