The Telecom Regulatory Authority of India (TRAI) has recommended auctioning all available spectrum from 600 MHz to 26 GHz for a 20-year period, while also proposing lower entry barriers for new telecom players and a uniform 35% spectrum cap.
The recommendations seek to support competition, improve spectrum use, and expand mobile broadband coverage across underserved areas. TRAI issued the recommendations after the Department of Telecommunications (DoT) sought its views on May 15, 2025.
The package covers reserve prices, band planning, block sizes, and auction terms for several spectrum bands. The recommendations now set the stage for the government’s next major spectrum sale as India continues to expand 5G networks.
TRAI has recommended putting all available spectrum in nine frequency bands up for auction in the upcoming sale. These bands include 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz. The regulator has proposed a 20-year validity period and auctioning at the licensed service area level.
The regulator has also asked DoT to reclaim spectrum held by telecom service providers that are currently undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. TRAI has said the department should include such a spectrum in the forthcoming auction to improve availability and support efficient allocation.
TRAI has retained the Simultaneous Multiple Round Auction format for the sale. Furthermore, it has recommended that the existing eligibility conditions in the 2024 Notice Inviting Application continue for participation across all bands. These steps indicate continuity in auction design while broadening the supply of airwaves.
TRAI has proposed a lower net worth requirement for new entrants. The regulator has recommended reducing the threshold to ₹50 crore per licensed service area from ₹100 crore earlier. For Jammu and Kashmir and the Northeast, it has proposed a lower threshold of ₹25 crore.
TRAI has also proposed a uniform spectrum cap of 35% across low, mid and high-frequency bands. The cap aims to prevent excessive concentration of spectrum holdings. At the same time, the regulator has said operators already above the cap should not surrender their existing holdings.
TRAI has proposed a separate set of terms for the 600 MHz band, which operators value for wider and deeper coverage. It suggested auctioning the band in 2×5 MHz blocks, with bidding starting at one block and extending validity to 24 years instead of the usual 20.
Furthermore, the regulator proposed a four-year payment moratorium and a four-year pause before rollout obligations begin. It further suggested flexible payment options to ease upfront costs and support stronger participation in the 600 MHz auction.
For the upper 6 GHz band (6425–6725 MHz and 7025–7125 MHz), TRAI has recommended reserving the spectrum for mobile services but not auctioning it yet. The regulator has advised re-examining the matter after the World Radiocommunication Conference 2027, when global harmonization and ecosystem readiness may become clearer.
TRAI has also proposed a coverage-linked incentive scheme. Under this plan, successful bidders could receive up to a 10% reduction in auction-determined spectrum price if they deploy new base station sites in DoT-identified coverage gaps within one year. The regulator has also proposed mandatory sharing of such sites to support multi-operator access in underserved areas.