Telecom Regulatory Authority of India (TRAI) released a comprehensive set of recommendations for the upcoming spectrum auction, proposing deep cuts in reserve prices of up to 37% to encourage bidding in bands that previously went unsold.
The total value of the airwaves on the block is estimated at ₹2.1 lakh crore, with the regulator signaling a strategic shift away from maximizing immediate revenue toward ensuring wider 5G coverage and long-term digital inclusion.
Key Pricing & Band Recommendations
TRAI has proposed putting roughly 11,790 MHz of spectrum across nine different frequency bands up for auction.
- 37% Price Slash: The most significant reductions apply to specific band-circle combinations (like the 600 MHz and 26 GHz bands) that saw zero demand in the 2022 and 2024 auctions. On a pan-India basis, overall spectrum prices are roughly 19% cheaper than in 2022.
- The “Unsold” Rule: For bands that remained entirely unsold in previous rounds, the reserve price has been fixed at 60% of the last discovered price (down from the usual 70% benchmark).
- 600 MHz Incentives: To boost the ecosystem for this critical coverage band, TRAI suggested a 4-year moratorium on payments and extending the spectrum validity to 24 years (instead of the standard 20 years).
Lowering Barriers to Entry
In an effort to break the current “duopoly” market structure and encourage new regional or niche players, the regulator has significantly eased financial requirements:
| Requirement | Previous Rule | New Recommendation (Feb 2026) |
| Net-Worth (Standard LSA) | ₹100 Crore | ₹50 Crore |
| Net-Worth (J&K / NE) | ₹50 Crore | ₹25 Crore |
| Upfront Payment (600 MHz) | Varies | Only 5% (with 4-year holiday) |
New “Coverage-for-Discount” Scheme
One of the most innovative proposals in the 2026 recommendations is a financial incentive to bridge the digital divide in “shadow areas.”
- 10% Cost Reduction: Successful bidders can opt for a 10% discount on their final spectrum auction price if they commit to deploying 4G or 5G base stations in government-identified “coverage holes” within one year.
- Mandatory Sharing: To avoid infrastructure duplication, any towers built under this discount scheme must be shared with competing telecom operators at a fair price.
What Happens Next?
- DoT Evaluation: Communications Minister Jyotiraditya Scindia confirmed yesterday (Feb 25) that the Department of Telecommunications (DoT) is currently evaluating these views and will decide on the final “Notice Inviting Application” (NIA) shortly.
- Auction Timeline: Market analysts expect the auction to be held in late Q2 or early Q3 of 2026 (July–September).
- The 6 GHz Decision: TRAI has recommended withholding the 6 GHz band from this immediate auction, reserving it for future IMT (mobile) use but awaiting further global technical trials before commercial sale.
Market Reaction
The news has been welcomed by the industry, with Vodafone Idea (Vi) seeing a minor stock bump as the lower entry barriers and spectrum prices provide a much-needed lifeline for the financially strained operator to bolster its 5G holdings.
