5G price ‘exorbitant’ at $7 b per 100 MHz, says CLSA

5G spectrum in India is priced at an “exorbitant” $7 billion per 100 MHz, which is nearly four times of that in Korea, and will be big drag on companies’ Internal Rate of Return (IRR), according to brokerage firm CLSA.

“Only significantly lower prices will justify above cost IRR and spectrum purchases,” according to a study by the brokerage firm. TRAI has recommended sale of 275 MHz of spectrum in 3.3-3.6 GHz band, implying that individual operators could get 80-100 MHz spectrum in this band. However, at the recommended reserve price of ₹490 crore per MHz, operators will have to pay about $7 billion for 100MHz spectrum.