The federal cabinet, led by Prime Minister Narendra Modi, has approved the Department of Telecom’s 5G spectrum auction, in which bidders would be assigned spectrum to provide 5G services to the general public and businesses.
5G services will be available in India very shortly. The Union Cabinet, led by Prime Minister Narendra Modi, has finally approved the Department of Telecommunications’ (5G) spectrum auction, in which bidders would be assigned spectrum to provide 5G services to the general public and businesses.
According to the cabinet, the 5G network would offer 10 times the speed and capacity of present 4G networks.
A total of 72097.85 MHz of spectrum with a 20-year validity period will be auctioned by the end of July 2022, according to reports. The “spectrum auction announced today is a vital aspect of establishing the BharatKa5G ecosystem,” stated Ashwini Vaishnav, Minister of Telecom and IT.
The “auction will be held for spectrum in several Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz), and High (26 GHz) frequency bands,” according to a statement from PIB.
The Telecom Sector Reforms, which were announced in September 2021, are said to boost the spectrum auction. Zero Spectrum Usage Charges (SUC) on spectrum obtained in the next auction are included in the revisions, offering significant relief to service providers in terms of telecom network operating costs.
For the first time, the cabinet stated that “there is no mandatory necessity for selected bidders to make upfront payment.” Spectrum payments can be made in 20 equal annual instalments, payable in advance at the start of each year.
“The bidders will have the option to surrender the spectrum after ten years with no future liabilities for balance instalments,” the Modi administration said in an official statement.
“Sufficient backhaul spectrum must also be available to facilitate the rollout of 5G services.” To satisfy backhaul demand, the Cabinet has decided to award Telecom Service Providers two 250 MHz E-band carriers on an interim basis.
In addition, the Cabinet resolved to quadruple the number of classic microwave backhaul carriers in the existing frequency bands of 13, 15, 18, and 21 GHz,” according to the press statement.