Lok Sabha Question No. 125 (STARRED), answered on 2024-07-31
Subject: Auction of 5G Spectrum
Ministry: COMMUNICATION
Asked by: Shri T R Baalu, Shri Sukhdeo Bhagat

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION NO. 125 TO BE ANSWERED ON 31 ST  JULY, 2024

## AUCTION OF 5G SPECTRUM

|             | SHRI SUKHDEO BHAGAT:                                                                                                                                               |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) and     | whether it is a fact that the allotment of 5G Spectrum made recently was not as successful profitable as expected by the Government;                               |
| (b)         | if so, the reasons for the huge loss of revenue from the 5G spectrum auctions;                                                                                     |
| (c)         | the details of the recent 5G spectrum auction including the total spectrum and the financial commitments made by telecom operators;                                |
| (d)         | the specific challenges faced by the telecom operators during the auction process; and                                                                             |
| (e) limited | the manner in which the Government plans to address issues such as high reserve prices and bidding interest to ensure that future auctions are more participative? |
| ANSWER      | ANSWER                                                                                                                                                             |
| (a) to (e)  | A statement is laid on the Table of the House.                                                                                                                     |

## STATEMENT TO BE LAID ON THE TABLE OF LOK SABHA IN RESPECT OF PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 125 FOR 31 ST  JULY, 2024 REGARDING 'AUCTION OF 5G SPECTRUM.'

(a) to (c) No. Spectrum Auction 2023-24 was primarily conducted to maintain continuity of services by giving opportunity to TSPs to replenish the spectrum which was expiring in 2024 and to incrementally augment the existing mobile services. All the available spectrum was put to auction and  spectrum  worth  Rs  11,340.78  crores  was  bought  by  Telecom  Service  Providers(TSPs). Department  of  Telecom  (DoT)  issued  Notice  Inviting  Applications  (NIA)  for  Spectrum  Auction 2023-24 on 08.03.2024. All the available spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz & 26 GHz spectrum bands spread across 22 License Service Areas (LSAs) was put to auction.  The auction started on 25.06.2024 and concluded on 26.06.2024 after seven (7) rounds of bidding. Telecom Service Providers (TSPs) bought the spectrum as per their requirement.  Some  TSPs  renewed  their  expiring  spectrum and  some  also acquired  an additional spectrum for their network expansion & consolidation. As the Spectrum Auction 2023-24 brought in a  revenue  of  Rs  11,340.78  crores  to  the  government  exchequer  and  was  successful.  Hence,  the question of loss of revenue does not arise.

- (d) None

(e) Recommendation of reserve prices is a function entrusted to TRAI which is an independent regulator. TRAI recommends reserve prices after due consultation process with the stakeholders. TRAI had recommended reserve prices for the available spectrum bands in April, 2022 and had further  recommended to  use same prices for a period  of  3 years with  suitable indexation.  These reserve prices were used in Spectrum Auction 2023-24. The reserve prices were not high nor there was limited bidding interest as Government garnered Rs 11,340.78 crores.

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