The telecom regulator is exploring the possibility of slashing the base price of 5G spectrum by 50 per cent against its recommendation in 2018. The regulator is due to submit its recommendations to the telecom department by this month, with the government targeting a launch by Independence Day.

Sources said the Telecom Regulatory Authority of India (Trai) is yet to take a final call but there is a growing consensus on a cut in the reserve prices.

The government is also in favour of a cut in the base price as it wants deepen the reform package which it announced in September.

In 2018, Trai had recommended a reserve price of Rs 492 crore per Mhz for the 3300-3600Mhz band, considered steep as the operators will have to pay a minimum Rs 49,200 for 100Mhz spectrum.

In the 700Mhz band, Trai reduced the base price for the auctions last year by 43 per cent to Rs 6,568cr per Mhz against the recommendations made in 2016. But the minimum payout of Rs 32,840 crore for 5hz was still very high.

More than 60 per cent of the spectrum went unsold in the preceding auctions in October 2016 and March 2021. With a significant chunk of spectrum remaining unsold and given the government's commitment to reforms, the industry expects the reserve prices to be set at realistic levels.

The DoT plans to hold the auction for the radio waves by May, so that telcos have enough time to roll out the services by August.