The Telecom Regulatory Authority of India (Trai) on Tuesday recommended that all available spectrum across bands ranging from 600 MHz to 26 GHz be put on the block. The allocation should be for a validity period of 20 years and carried out at the licensed service area (LSA) level, it said.
Trai has also asked the Department of Telecommunications (DoT) to initiate steps to take back spectrum held by telecom service providers undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, and include those airwaves in the upcoming sale.
TRAI’s reccomendations
The recommendations come on a reference received from DoT on May 15, 2025, seeking Trai’s views on reserve prices, band plans, block sizes, quantum of spectrum and auction conditions across key bands. The regulator subsequently released a consultation paper on September 30, 2025.
The regulator has also proposed lowering the net worth requirement for new entrants to 50 crore per licensed service area (LSA) from100 crore earlier. For Jammu & Kashmir and the North East, the threshold has been further reduced to Rs 25 crore.
The easing of entry norms is aimed at attracting new players and improving competition in a market that has lately seen consolidation.
Trai has also proposed special provisions for the 600 MHz band, which is considered critical for expanding coverage. These include auctioning it in 2×5 MHz blocks with a minimum bid of one block, flexible payment terms, a moratorium on payments, and deferred rollout obligations, along with a longer validity period than the standard 20 years.
On the 6 GHz band, seen integral for 5G evolution and potential 6G services, Trai has taken a fine-tuned approach by recommending that it be earmarked for telecom use but not auctioned at this stage.
For the band, 6425–6725 MHz and 7025–7125 MHz—the regulator has suggested that a final decision be taken after the World Radiocommunication Conference in 2027, when global harmonisation and ecosystem development are expected to be clearer.
Recommendations retain the existing auction framework
The recommendations retain the existing auction framework, including the Simultaneous Multiple Round Auction format, and propose a spectrum cap of 35% across bands to prevent excessive concentration of airwaves.
For the 1427-1518 MHz frequency range, Trai said that it should be re-examined after the DoT decides to put this band to auction.
In a bid to address connectivity gaps, the regulator has also proposed an incentive scheme to expand mobile broadband coverage in areas not served and not covered under the Universal Service Obligation Fund, (now Digital Bharat Nidhi). Successful bidders could opt for up to a 10% reduction in auction-determined price in exchange for deploying new base station sites within one year in coverage gaps identified by the DoT, with mandatory site sharing to ensure multi-operator presence.