Introduction
The Spectrum Auction of 2021 was a stark indicator of the declining interest in spectrum bidding, reflecting a significant lack of enthusiasm from telecom operators. This auction, held from 1st March to 2nd March 2021, lasted just two days and saw only six rounds of bidding, compared to 31 rounds in the 2016 auction. The diminished bidding activity pointed to deeper systemic issues, primarily driven by unrealistic reserve prices, inadequate demand, and a near-monopolistic market structure.
Reserve Price
TRAI recommended the reserve prices for the 2021 auction through its recommendations dated 1st August 2018. Much like in previous auctions, TRAI used an indexed value approach to determine reserve prices, which once again reflected their dependence on historical pricing rather than market-driven valuation. The pricing model was as follows:
