4G spectrum sale cleared, reserve price lower than TRAI advice

The Union Cabinet on Wednesday approved the sale of 2251.25 MHz of spectrum across seven frequency bands at a reserve price of Rs 3.92 lakh crore.

These auctions are only for 4G services, as the Department of Telecommunications (DoT) is yet to finalise the spectrum bands for auction of 5G spectrum.

The notice inviting applications from telecom service providers will be issued later this month, and the government hopes to complete the sale by March 2021, Telecom Minister Ravi Shankar Prasad said.

The new round of auctions is likely to provide a boost to government revenue collections at a time when its inflows from other sources such as direct taxes, indirect taxes such as goods and services tax, have fallen sharply on account of restrictions to prevent the spread of Covid-19.