IMC 2019: Ravi Shankar Prasad promises reforms in spectrum pricing

Telecom minister Ravi Shankar Prasad on Monday promised reforms in cost of spectrum and said that auctions will take place in current fiscal year. Prasad was speaking at India Mobile Congress 2019 in New Delhi. This comes amid widespread concerns over excessive pricing of radiowaves including 5G.

Speaking at India Mobile Congress 2019, Prasad said government was aware and alive to some problems and challenges being faced by telecommunications industry.

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"Spectrum auctions will be done this financial year... We are undertaking some reforms in spectrum pricing," he said.

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Telecom Regulatory Authority of India (Trai) had last year recommended auction of about 8,644 MHz of telecom frequencies, including those for 5G services, at an estimated total base price of Rs 4.9 lakh crore, but financially-stressed industry that is buckling under high debt, had argued that proposed prices are unaffordable and exorbitant.

Some industry players had pointed out that aver price of 5G band auctioned in countries like South Korea, Spain, UK and Italy comes out to be Rs 84 crore/MHz, whereas Trai's recommended price for same band is 5 to 6 times higher at Rs 492 crore/MHz.

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Bharti Airtel's vice-chairman Rakesh Bharti Mittal also said that high cost of spectrum, as well as cost of deploying networks, are expected to affect India's debt-ridden telecom sector. Mittal said 75% cost of deploying optical fibre in India includes fees charged by local authorities. Mittal was also speaking at India Mobile Congress 2019.

(With PTI inputs)