Telcos call for base price cut as spectrum auction nears

Bharti Airtel Ltd, Reliance Jio Infocomm Ltd and Vodafone Idea Ltd have called for sharply lowering the base price for the next spectrum auctions and extending the spectrum usage period to as long as 40 years.

- Jatin Grover

In submissions made to the Telecom Regulatory Authority of India (Trai), the telecom operators said this is needed to ensure robust network expansion and accelerate 5G deployment.

The request, which comes ahead of the next spectrum auction likely early next year, reflects persistent concerns among operators that steep reserve prices are stifling investment, leaving valuable airwaves unsold, and ultimately undermining the government's Digital India vision. Having cheaper airwaves is necessary to free up capital for network infrastructure, the telecom companies said.

"Excessively high reserve prices keep valuable spectrum idle and result in operators facing capacity and capital constraints," Rahul Vatts, chief regulatory officer of Bharti Airtel, stated in a submission to Trai.

He said spectrum that remains unsold or underutilized due to inflated pricing is a "direct loss to the country," delaying network expansion and degrading service quality. By reducing costs, operators could redirect capital toward "network densification, faster 5G rollout, and wider rural coverage." Spectrum represents a critical revenue stream for the government, which sets a base price and expects companies to bid higher. However, aggressive bidding has eased since 2021, with most of the airwaves sold near reserve prices-a shift driven by industry consolidation, high base prices, and the financial burden of recent 5G rollouts.