No spectrum sale this year, new bands likely in 2026

The operators are currently looking to recoup the investments gone into purchasing ₹1.5 trillion worth 5G spectrum in 2022 and capital expenditure for rollout of the network, analysts said.

“Department of telecommunications (DoT) is targeting to auction the spectrum early next year,” one of the officials cited above said. “In the next few months, a reference will be sent to Trai (Telecom Regulatory Authority of India) for the same.” 

To bring new spectrum bands such as 6GHz for auction, the DoT would need telecom regulator Telecom Regulatory Authority of India (Trai) to recommend its reserve price.

This official added that the plan is to bring 6GHz spectrum in the next auction, possibly in 2026. The 6GHz spectrum band–in the range of 5,925-7,125 Mhz–has a total of 1,200 MHz in quantity. The band supports faster and more reliable wireless communication for both 5G and wifi technologies.

Also read | DoT may favour waiving spectrum bank guarantees

In January, the government approved about half of the 6GHz band in the range of 6,425-7,025 MHz for telecom operators via auctions. However, since the band is used for satellite operations by the Indian Indian Space Research Organisation (Isro), there is a possibility that only 300MHz quantity could be made available to get started with in the next auction, the official quoted above said.

“If the government conducts an auction now, the prices for the waves will be more than what telcos can afford,” a senior executive in one of the private telcos said, requesting anonymity. “The government will not want that and, hence, may schedule it later.”

The government auctions spectrum–a range of invisible radio waves that carry wireless signals, like those used for mobile phones, TV, and wifi–to telecom companies so they can use specific radio frequencies to provide mobile and internet services. Auctions help ensure fair competition, efficient use of spectrum, and generate revenue for the government.

In the September 2021 reforms, the Union cabinet had approved conducting spectrum auctions annually. “Spectrum auctions to be normally held in the last quarter of every financial year,” the government had said in a release dated 15 September 2021.

Read this | Trai, telecom companies spar over data demand

Post the policy, the spectrum auction schedule has been haywire. For example, the 5G spectrum auctions in 2022 were held in July, no auctions were held in 2023 calendar year, and in 2024 the government conducted auctions in June.

“Conducting successful auctions depends on the demand from operators, who have bought spectrum worth ₹1.5 trillion in 2022 and ₹11,340 crore in 2024,” another official said, adding that auctions are expected early next year but not in 2025 calendar year.

Further, this year the action will be towards allocating satellite spectrum through non-auction route, the second official said.

On 7 May, the government gave a letter of intent to Elon Musk-owned Starlink for its satellite internet services in the country. The company would also require approval from the nodal agency Indian National Space Promotion and Authorisation Centre (IN-SPACe). Next step: once Trai makes its recommendations on the spectrum pricing, DoT will be able to allocate the spectrum to companies such as Starlink, Jio-SES joint venture, and Bharti Enterprises-backed Eutelsat OneWeb.

“Demand for spectrum is likely to remain lukewarm in the near to medium term, as telecom operators have already made significant investments in the recent 5G auctions and future demand may be limited to specific circles,” said Mahesh Uppal, director at ComFirst, a telecom consultancy firm, adding that it will be challenging for the government to generate windfall gains from upcoming spectrum auctions.

Also read | Vodafone Idea’s 5G rollout comes with a side of satellite internet FOMO

Queries emailed to DoT and telecom operators did not elicit any response till press time.

Spectrum on the way

Lately, telecom operators and technology companies such as Google, Meta, and wifi players were at loggerheads over the 6GHz band. Technology companies wanted the band to be delicensed and provided free to use for wifi. While the 600 MHz from the 6GHz band for telecom operators is being approved for telcos through auction, there has been no decision yet on the remaining quantity of the band, officials said.

Among the new bands, spectrum in the 37-40 GHz band worth ₹18,000 crore, for which Trai recently provided its recommendations, will also be brought to the next auction, whenever it happens. 

There have also been discussions on whether the 3,700-4,200 MHz band as well can be brought for auction, the second official cited earlier said. The 37-40 GHz band, across 22 circles, is essential for telecom capacity expansion and high-speed connectivity in dense areas. The 3,700–4,200 MHz is crucial for 5G as it offers an optimal balance between coverage and capacity, making it ideal for widespread, high-performance mobile broadband services.

Further, in January, the Union cabinet had approved the refarming of over 1,100 MHz of spectrum from various ministries and departments, including the defence ministry, the Indian Space Research Organisation (Isro), and the information and broadcasting ministry, for reallocation to telecom operators to support 5G and future 6G services. The spectrum will be gradually released over the years as first it will be vacated from the incumbent holders and then will be cleaned to bring for auctions.

Read this | Starlink receives approval to launch satellite internet services in India

According to the Cellular Operators Association of India (COAI), which represents major telecom operators, India needs 2,000 MHz of spectrum in the mid-band range (1-6GHz) to ensure data rates of 100 Mbps (for downlink) and 50 Mbps (uplink) in densely populated areas. Currently, around 900 MHz spectrum is available for telcos in the band, COAI said in a press briefing in March.

Mid-band spectrum is crucial for 5G as it provides the best trade-off between speed and coverage, making it ideal for nationwide deployment. 

To be sure, in 2021, a total of 855.6 MHz spectrum worth ₹77,820 crore in 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, and 2,300 MHz bands was auctioned. In 2022, a total of 72,097.85 MHz spectrum worth ₹1.5 trillion in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, and 2500 MHz, 3300 MHz, and 26 GHz bands was auctioned.

Notably, Adani Data Networks, a wholly owned subsidiary of Adani Enterprises Ltd had acquired 400 MHz spectrum in the 26 GHz band for ₹212 crore. Last month, the company transferred the rights of its spectrum to Bharti Airtel and Bharti Hexacom, on not being able to deploy the spectrum to connect its ports, airports and other facilities.

After giving auctions a miss in 2023, the government collected ₹11,340.78 crore—the third lowest since competitive bidding began in 2010–in the 2024 auction. The government had put up 10,523.2 MHz of spectrum worth ₹96,320 crore on sale, but managed to find buyers for just about 1.3% of the total radio frequencies on offer.

“Spectrum auction 2024 was part of a continuous allocation process that is transparent, robust and progressive. Telecom service providers have taken spectrum not only for continuity of service but for expanding their services, but the volume is limited because already a large part of the spectrum required was auctioned only last year (2022),” minister of communications Jyotiraditya Scindia had said in a statement after the auctions ended last year.

And read | Telecom Q3 review: Airtel triumphs in Arpu battle, but Jio could win the war

Last December, the standing committee on communications and information technology had asked the DoT to diversify its revenue streams from the telecom sector to increase the government’s revenue. According to the committee, heavy reliance on one-time spectrum auctions for financial need could lead to revenue gaps in years when auctions are not held or when the spectrum supply decreases.

Notably, in FY26, telecom revenue for the government is projected to fall by over 33% to ₹82,442.84 crore from ₹1.2 trillion in FY25, according to budget documents. DoT’s revenue stream includes licence fee from telcos, spectrum usage charges (for spectrum acquired before 2022), and spectrum auction payments.