Trai may open up spectrum auction to non-telecom firms

India's telecom regulator has sought public views on whether other entities, like those providing internet services or large connected device networks, should be allowed to bid for spectrum along with wireless carriers to ensure competition during auctions.

- Jatin Grover

Aggressive bidding for spectrum has eased since 2021, with most of the airwaves sold near reserve prices.

"Apparently, the concern of the Department of Economic Affairs is to ensure effective competition in the auction process," the Telecom Regulatory Authority of India (Trai) said in a consultation paper released on Tuesday. Stakeholders have until 28 October to submit their feedback.

Spectrum sale is shaped by market forces as well as various economic and technological factors, such as demand for telecom services and the number of bidders participating in the auction, according to the regulator. A higher number of bidders leads to greater bidding intensity, increasing the possibility of the spectrum being sold at a higher auction-determined price compared to the base price, Trai said.