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TRAI Recommends Auction of 9 Spectrum Bands for ₹81,000 Cr, Lowers Entry Net Worth to ₹50 Cr

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
24 Feb 2026
~2 min
Source: The Hindu
Key Data:₹81,000 crore35% spectrum cap₹50 crore net worth20 years validity9 frequency bands
Bodies:TRAIDoT
Practice MCQs from today's news ▸
What This Article Covers

1.TRAI recommends auctioning all available spectrum across 9 bands (600 MHz to 26 GHz) with a potential reserve price revenue of ₹81,000 crore.

2.Key reforms include lowering the net worth criteria for new entrants from ₹100 crore to ₹50 crore per service area and imposing a uniform 35% spectrum cap to prevent monopolies.

3.A novel 'coverage-for-discount' scheme allows operators to offset up to 10% of auction costs by expanding 4G/5G services into government-identified 'dead zones'.

The Big Picture
Prelims · HighMains · Medium

TRAI has proposed a major spectrum auction covering all nine available frequency bands, potentially fetching ₹81,000 crore. To boost competition, it recommends halving the financial entry barrier for new telecom players and introducing a uniform 35% spectrum cap across all bands. This paves the way for expanding 5G networks and bridging the digital divide.

Exam Lens

Quick Exam Facts From News

Potential Auction Value₹81,000 crore (at reserve price)
New Net Worth Criteria₹50 crore (reduced from ₹100 crore)
Uniform Spectrum Cap35% across all bands
Spectrum Validity Period20 years (24 years for 600 MHz band)
Number of Frequency Bands9 bands

1-Minute Revision

  • ›Potential Auction Value: ₹81,000 crore (at reserve price)
  • ›New Net Worth Criteria: ₹50 crore (reduced from ₹100 crore)
  • ›Target this Data: ₹81,000 crore (potential auction value at reserve price) and 35% (uniform spectrum cap).
  • ›Target this Nodal Body: Telecom Regulatory Authority of India (TRAI) and Department of Telecommunications (DoT).
  • ›Target this Legal Point: Notice Inviting Application (NIA) - the official auction bid document.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which regulatory body has issued the recommendations for the upcoming spectrum auction as per the news?

Q2Statement-basedHard

Consider the following statements regarding the recent TRAI recommendations on spectrum auction:

1. It proposes auctioning spectrum in the upper 6 GHz band (6425-7125 MHz) immediately.

2. It recommends a uniform spectrum cap of 35% across all frequency bands, including low, mid, and high bands.

3. It suggests increasing the net worth criteria for new entrants to ₹150 crore per licensed service area.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to industry calculations mentioned in the article, what is the approximate potential revenue from the sale of all available spectrum (excluding 600 MHz) at the reserve price?

Q4Application/ImpactMedium

What is the primary objective of the novel 'coverage-for-discount' scheme proposed by TRAI in the news?

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