- Why in news
- On 24 February 2026, TRAI released its recommendations on the auction of spectrum in IMT bands. DoT had sought them on reserve price, band plan, block size and auction conditions.
- What it is
- TRAI is the statutory regulator for telecom. Under Section 11(1)(a) of the TRAI Act, 1997, it gives recommendations to the government on matters such as spectrum auctions. The government decides, and the auction is held by DoT.
- Legal basis of the reference
- DoT asked for these recommendations under Section 11(1)(a) of the TRAI Act, 1997. The recommendations are advisory.
- Auction design
- Spectrum goes by Telecom Circle or Metro Area, valid for 20 years. The SMRA format continues.
- Spectrum cap
- A 35% cap is recommended on spectrum available for access services in each band group. Operators already above the cap need not surrender spectrum.
- Net-worth for new entrants
- The requirement is cut from Rs 100 crore to Rs 50 crore per licensed service area. For J&K and North East it falls from Rs 50 crore to Rs 25 crore.
- 6 GHz upper band
- It is kept reserved for IMT but not auctioned now. The issue is to be re-examined after WRC-27.
- Revaluation periodicity
- Fresh spectrum valuation is recommended once every three years for existing bands.
Don’t confuse with Spectrum cap vs reserve price: The cap limits how much spectrum one operator can hold. The reserve price is the minimum bid floor per MHz in a service area.
Don’t confuse with USOF vs Digital Bharat Nidhi: USOF has been renamed Digital Bharat Nidhi. It funds coverage in uncovered areas, and the new incentive targets areas outside its schemes.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Predictable pricing and a larger spectrum pool support 5G rollout and competition.
- Lower net worth for new entrants and set-asides for ISPs and captive networks may widen the market.
Problems
- Reserve prices and payment terms affect the finances of already indebted telecom operators.
- Spectrum held by insolvent operators raises questions of recovery under the IBC and the claims of creditors.
Way forward
- DoT should decide the auction promptly and finish post-auction harmonisation within six months.
- Link spectrum cost relief to coverage in uncovered areas, with mandatory site sharing.
Put in your answer
Coverage incentive: Winners could cut up to 10% of the auction price by building new base stations in coverage holes, with site sharing.
Legal framework: The recommendations ask for faster new authorisations under the Telecommunications Act, 2023.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Spectrum auction is a lasting telecom policy topic, but this recommendation has few testable facts and UPSC rarely asks it.
Worth revising until Prelims 2027: most news questions come within two years of the event.