NEW DELHI: The government has approved 5G spectrum auction in India through which 5G services may be provided to citizens in future. The Department of Telecommunication is aiming for auctions to be conducted on July 26.
One of the biggest highlights is that the government has also decided to enable the development and setting up of Private Captive Networks. Having said that, the government has provided no clarity yet as to if spectrum will be allocated at nominal rates for private networks or whether spectrum will be auctioned at reserve prices. Telcos may be unhappy if the government provides spectrum for private networks.
Also read: 5G Spectrum Auction: These 13 Cities May Get 5G First in India
Here are the key things you need to know about the 5G spectrum auction in India
The government is making 5G spectrum auctions easy for companies
The government is looking at measures to reduce the cost of doing business for Telecom Service Providers. The spectrum auction will be benefitted by the Telecom Sector Reforms announced in September, 2021. The reforms include zero Spectrum Usage Charges (SUC) on the spectrum acquired in the upcoming auction, providing a significant relief to the service providers in terms of the operating cost of telecom networks. Further, the requirement of submitting a financial bank guarantee equivalent to one annual instalment has also been done away with.
Also read: India A Step Closer To Getting 5G As Cabinet Approves Spectrum Auction
The Department of Telecommunication is aiming for auctions to be conducted on July 26.
Payments for spectrum can be made in 20 equal annual instalments to be paid in advance at the beginning of each year. This is expected to significantly ease cash flow requirements and lower the cost of doing business in this sector. The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance instalments.
Also read: 5G Coming Soon To India But Here’s Why 4G Will Continue To Rule
Over 72 GHz of Spectrum to be auctioned for a period of 20 years
A total of 72097.85 MHz of spectrum with a validity period of 20 years will be put to auction to be held by the end of July, 2022. The auction will be held for spectrum in various Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) frequency bands.
5G to be 10X faster than 4G in India
It is expected that the Mid and High band spectrum will be utilised by Telecom Service Providers to roll-out of 5G technology-based services capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services.
Telcos not required to make upfront payment, spectrum dues can be paid in 20 equal instalments.
The government is trying to ensure sufficient backhaul spectrum
The availability of sufficient backhaul spectrum is also necessary to enable the roll-out of 5G services. To meet the backhaul demand, the Cabinet has decided to provisionally allot 2 carriers of 250 MHz each in E-band to the Telecom Service Providers. The Cabinet also decided to double the number of traditional Microwave backhaul carriers in the existing frequency bands of 13, 15, 18 and 21 GHz bands.
Government to develop Private Captive Networks
The government also decided to enable the development and setting up of Private Captive Networks to spur a new wave of innovations in Industry 4.0 applications such as machine to machine communications, Internet of Things (IoT), Artificial Intelligence (AI) across automotive, healthcare, agriculture, energy, and othe
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