DoT says spectrum price fine, next auction hinges on demand

A telecom service provider (TSP) has approached the government with concerns over the high reserve prices for spectrum, Neeraj Mittal, telecom secretary, said on Thursday.

- Jatin Grover

India’s low data tariffs suggest that spectrum pricing is not a significant issue, he added. “I have not seen any TSP come to me saying that they are not using a respective spectrum because its pricing is high,” Mittal said on the sidelines of the India Mobile Congress, adding that if the reserve prices are too high, how are the data prices too low.

He also said the next spectrum auction will depend on the appetite and the demand. “We will discuss with TSPs and everyone else who is supposed to use the spectrum and figure that out,” he added.

The secretary's comments on the spectrum reserve price assume significance because since 2016, spectrum has been largely sold at not much more than the government's reserve price.

This became clearer in the last two auctions held in 2022 and 2024, indicating low spectrum demand. This led the department of economic affairs (DEA) to flag a lack of effective competition that could lead to further poor auction outcomes.