TRAI backs full spectrum auction at Rs 2.1 lakh Cr, cuts reserve prices by 19%
The Telecom Regulatory Authority of India (TRAI) has recommended auctioning the entire available 11,790 MHz of spectrum across nine frequency bands, valuing it at around Rs 2.1 lakh crore at reserve prices if fully sold. Official sources said the overall reserve price is 19 per cent lower than the 2022 valuation , reflecting a policy shift toward making spectrum more affordable while encouraging broader participation in the telecom sector.
The spectrum spans 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands and will support 4G, 5G and future 6G services . Lower-frequency bands will strengthen coverage in rural and remote areas, while mid and high bands will enable high-capacity urban networks, enterprise connectivity and advanced digital applications. The auction is expected to accelerate India’s transition toward next-generation networks , including 6G-ready infrastructure over the long term.
To widen participation, TRAI proposed cutting the net worth requirement for new entrants from Rs 100 crore to Rs 50 crore per Licensed Service Area , and from Rs 50 crore to Rs 25 crore for Jammu & Kashmir and the Northeast , along with a uniform 35 per cent spectrum cap to prevent market concentration and safeguard competition. The regulator also urged the Department of Telecommunications (DoT) to reclaim spectrum held by telecom companies undergoing insolvency and include it in the upcoming auction. This recommendation aligns with a recent Supreme Court judgment that held spectrum allocated to service providers is not an asset of the companies and cannot be treated as part of their property in insolvency proceedings , because it remains a sovereign national resource owned by the Government of India and cannot be subjected to liquidation or creditor claims under the Insolvency and Bankruptcy Code.
Industry executives expect Reliance Jio, Bharti Airtel and Vodafone Idea to be the principal bidders, with possible interest from enterprise network players and potential new entrants encouraged by relaxed eligibility norms. The auction is likely to be held in the second half of 2026 , following Cabinet approval and finalisation of auction rules by DoT.
The lower reserve prices are expected to ease financial pressure on operators, allowing them to prioritise network expansion rather than aggressive bidding. Analysts believe this could help stabilise tariffs and prevent sharp price hikes for consumers, while improving service quality, speeds and coverage. For users, the auction could translate into better 5G performance, reduced congestion and wider connectivity , especially in underserved regions.
Despite rising data demand and technology expansion, prices are lower than in 2022 due to weak participation in earlier auctions , high debt burdens on telecom operators , and a government strategy to ensure spectrum does not remain unsold. TRAI noted that while most bands are cheaper than before, a few band and regional combinations carry slightly higher reserve prices based on demand and availability. The recommendations also outline band plans, block sizes and auction conditions aimed at ensuring transparency and long-term sector sustainability.