Telecom regulator TRAI has raised the need to look at the option of auctioning, as followed in Europe, to price the 3G spectrum -- a move that has been opposed by the operators as it could cost a mind-boggling Rs 10,000 crore (Rs 100 billion) per operator for an all India 3G roll-out.
3G services, a high-end valued added service, will allow operators to offer mobile broadband services like high speed internet, video, video streaming, audio among others.
During a meeting on Friday with the industry where only COAI was present as an association but members of the other association AUSPI were present in their individual capacity, the regulator broached the European model, which comes to Rs 85 crore (Rs 850 million) per Mega Hertz per service area.
According to sources, the regulator brought up the idea for consultation among the operators that calls for extending the same model to India where Rs 85 crore could be charged per 1 Mhz per operator per service area (psa).
Since a minimum 5 Mhz of spectrum is to be allocated to each operator, the cost per operator psa to avail this much spectrum will be about Rs 425 crore (Rs 4.25 billion) per service area.
Sources present in the meeting said that TRAI suggested that this way about Rs 425 crore per operator psa could be considered as an entry fee for availing of 3G spectrum per operator.
The total cost per operator would come around a whopping Rs 10,000 crore for any player who applies for an all India 3G license if TRAI's model is put to action on auctioning.
Expectedly, it was strongly opposed by operators who said that in a poor country like India this is not at all affordable.
© 2026