The auction of 5G radiowaves has moved a step forward with the department of telecommunications preparing a cabinet note, which is likely to be taken up this week itself.
Sources said the DoT has taken note of the decisions taken by the Digital Communications Commission based on the recommendations of telecom regulator Trai.
They expressed optimism about holding the auction in June. The cabinet could take up the radio wave auction issue this week itself, which would enable the DoT to prepare the road map for holding the auction next month.
The DCC in its recommendations has suggested auctioning the radiowaves for a 20 year period, while suggesting no change in pricing.
In September last year, when the government announced a relief package for the telecom sector, it stated spectrum in the future would be given for a 30-year period.
Sources said the DCC went with the 20 year time period as Trai had suggested a base price cut of 36 per cent.
However, the regulator had suggested that the reserve price for spectrum allocation in the case of 30 years should be equal to 1.5 times the reserve price of allocation for 20 years in the respective band.
Telcos have been miffed over the pricing of spectrum although neither the DoT nor Trai has reviewed it. Telcos said with a 36 per cent cut in reserve price of 5G spectrum in the 3,300-3,670 MHz at Rs 317 per MHz, operators can buy 100 MHz for Rs 31,700 crore against the 2018 price of Rs 49,200 crore.
However, to get the spectrum for 30 years, operators will have to pay Rs 47,550 crore, which is not much lower than the earlier price.