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Telecom operators have sought to Trai that the reserve price for the 5G spectrum be cut down by more than 90% for the upcoming auction, with no upfront payment and a moratorium of 5-6 years. The amount of spectrum can be recovered over 24 years after the moratorium period.As per the comments submitted to the Telecom Regulatory Authority of India (Trai), Vodafone Idea said the reserve price for 3,300-3,670 Mhz band would have to be reduced by almost 90% of the earlier valuation basis when reserve price of Rs 492 crore/Mhz for pan-India spectrum was recommended. For the mmWave band (24.25 GHz to 28.5 GHz), the pricing should not be more than 1% of the pricing for 3,300-3,670 Mhz on a per Mhz basis. Reliance Jio in its submission said the reserve price for mid-band spectrum should be brought down by around 95% for a pan India 100 Mhz block and the reserve price of mmWave bands should be kept at 1/100th of the mid-band, and that of spectrum in V-band and E-band should be kept at 50% of mmWave, considering low ARPU (average revenue per user), purchasing power in India and international benchmarks. Bharti Airtel too said spectrum prices should at best be nominal and thus not be more than 10% of the prices recommended earlier in 2018. Regarding the payment terms, Bharti Airtel and Vodafone Idea have suggested no upfront payment with a moratorium of six years while Reliance Jio has proposed a 10% upfront payment required to ensure telecom operators commitment, followed by a five-year moratorium in payments. While Vodafone has suggested 20 annual installments post the moratorium period with interest rate at RBI repo rate, Jio has called for 25 installments after the moratorium period with interest at RBI repo rate. Bharti Airtel wants 24 installments after the moratorium with no interest.Regarding the spectrum caps, Airtel has proposed that the 50% cap in the sub-GHz band should be reduced to 35% while the overall cap of 35% should be continued with. Reliance Jio has submitted that in an effectively three-player market, the 35% cap is not suitable for promoting competition as this may lead to quasi-administrative allocation in some prized bands, therefore, it should be 50%. --------- Since, All Operators want HEAVY Concessions on 5G Spectrum along with Financing relief, Moratorium and 20-24 years for PAYMENT of that DISCOUNTED Spectrum. If that happens then, 5G Auction and ROLLOUT will Essentially be the RESPONSIBILITY and Headache for GoI and much Lesser for Telcos. A good Future for Telecom industry ahead.
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Telecom operators have sought to Trai that the reserve price for the 5G spectrum be cut down by more than 90% for the upcoming auction, with no upfront payment and a moratorium of 5-6 years. The amount of spectrum can be recovered over 24 y...
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