The Telecom Regulatory Authority of India (Trai) on Wednesday recommended the reserve prices for the auction of eight bands, including 5G spectrum.

While the government is yet to finalise the timing of the next round of auction, it has indicated all the available spectrum will be sold across bands such as 700, 800, 900, 1800, 2100, 2300, 2500, and 3300-3600 MHz.

The auction for 5G, for the first time in India, is expected to be a game changer. Networks promise to deliver faster speeds and more reliable connections on smartphones and other devices than ever before.

They also will potentially make networks more responsive and reliable for the eventual development of cutting-edge industrial automation, medical monitoring, driverless car and other business uses.

The telecom regulator has issued recommendations for the proposed 5G spectrum in 3300-3600 Mhz ban. Pricing has been set at Rs 492 crore per Mhz unpaired spectrum on pan India basis.

Trai has suggested that it should be put to auction in the block size of 20 MHz giving it a price of Rs 9,480 crore per block. To avoid monopolisation, the regulator has recommended a cap of 100 MHz per operator. However, given that 5G ecosystem is still to evolve, and a significant chunk of spectrum is available, operators may be selective in its bidding.

Looking at the stress in the industry, it is unlikely that service providers will be aggressive in buying spectrum. "It is too early to comment as we are currently reviewing the recommendations," said Rajan S Mathews, director general, Cellular Operators Association of India (COAI).

The government should also lower the spectrum usage charges, licence fees and other levies. Otherwise, the industry may not be able to cope with the requirements for state-of-the-art infrastructure needed for new technologies and early rollout of 5G, according to Mathews.

Also in a significant relief to the highly leveraged industry, the regulator has recommended a 42 percent cut in the premium 700 MHz reserve price to Rs 6,568 crore against Rs 11,485 crore in 2016, which had found no takers.

But a price cut may not evoke interest from the operators given pan India 5 MHz spectrum of 700 Mhz will cost Rs 32,840 crore, which is still quite steep.

Operators like Jio have 850 Mhz band which serves the same purpose and Bharti Airtel, Vodafone and Idea have 900 Mhz, which is also doing the same job.

"We are glad that the government has decided to bring down the price of spectrum, especially for the 700 MHz band," said Mathews.

However, considering the current financial stress the industry is going through, lowering the spectrum prices alone won't fix anything, he said.