Question : Spectrum Pricing

(a) whether the Government is planning to undertake reforms in pricing of the spectrum and if so, the details thereof;

(b) whether the Government is planning to auction the 5G spectrum at further reduced price and if so, the details thereof;

(c) whether the Government has decided to merge the national telephone carrier BSNL with MTNL and if so, the details thereof;

(d) whether the Government is aware that the current reserve price of 5G spectrum in the country is seven times higher than in other countries and if so, the details thereof; and

(e) the steps being taken by the Government to rationalise the pricing of spectrum?

Answer given by the minister

MINISTER OF COMMUNICATIONS, LAW & JUSTICE AND
ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI RAVI SHANKAR PRASAD)

(a) & (b) Telecom Regulatory Authority of India (TRAI) has given its recommendations on Auction of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3400 MHz, 3400-3600 MHz Bands dated 1.8.2018. The Government will decide on the pricing of spectrum including 5G spectrum for auction, after considering the recommendations of TRAI.

(c) The Government has approved, in principle, for merger of Bharat Sanchar Nigam Limited /Mahanagar Telephone Nigam Limited (BSNL/MTNL) as per relevant rules/guidelines of Government of India. Meanwhile, MTNL is to be made subsidiary of BSNL by transferring the Government shareholding of MTNL to BSNL to derive the synergy in network operations and sales till the merger is completed.

(d) In its recommendations dated 1.8.2018, TRAI has stated that after analysis of the Auction of 3300-3600 MHz, in various countries, it is evident that due to lack of adequate comparable data points, international benchmarking may not be appropriate for current valuation exercise for 3300-3600 MHz.


(e) TRAI has given its recommendations on Auction of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3400 MHz, 3400-3600 MHz Bands dated 1.8.2018. The Government will decide on the pricing of spectrum including 5G spectrum for auction, after considering the recommendations of TRAI.

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