Govt clears 5G airwave auction, bidding in July
NEW DELHI: In a big move, Prime Minister Narendra Modiled Union Cabinet has cleared the auction of 5G spectrum, which will be held the end of July. A total of 72 GHz (gigahertz) of spectrum - with a validity period of 20 years - will be put to auction. About 10 times faster than 4G, India is set to roll out the 5G services soon, the government said.
“The Union Cabinet chaired by Prime Minister Narendra Modi has approved a proposal of the Department of Telecommunications to conduct spectrum auction through which spectrum will be assigned to the successful bidders for providing 5G services to public and enterprises,” the release said.
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. 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,” it underlined.
“Broadband, especially the mobile broadband, has become (an) integral part of the daily lives of the citizens. This received a big boost through the rapid expansion of 4G services across the country since 2015. Eighty crore subscribers have access to broadband today compared to ten crore subscribers in 2014,” the statement further added.
New-age businesses are set to benefitted with the big move, which will also create additional revenue for enterprises.
“Digital connectivity has been an important part of policy initi
atives of the government through its flagship programs such as Digital India, Start-up India, Make in India and others,” an official statement read.
The Telecom Sector Reforms - announced in September last year - are expected to benefit the auction. The requirement of submitting a financial bank guarantee equivalent to one annual instalment has also been done away with.
The union cabinet has also decided to enable the development and setting up of Private Captive Networks, the government said, 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 other sectors.
Continuing the pace of telecom sector reforms, the Cabinet announced various progressive options with regard to the spectrum auction, for facilitating ease of doing business.
“For the first time ever, there is no mandatory requirement to make upfront payment by the successful bidders. Payments for spectrum can be made in 20 equal annual instalments to be paid in advance at the beginning of each year,” it said, adding 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.
“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,” it said.
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, the release said.
The Broadband India Forum (BIF), which had batted for private 5G networks by enterprises, on Wednesday said the Cabinet’s decision to enable captive networks is a forwardlooking step that will drive digital transformation, augment industry efficiencies and lead to greater economic benefits.
The Broadband India Forum (BIF), which had batted for private 5G networks by enterprises, on Wednesday said the Cabinet’s decision to enable captive networks is a forwardlooking step that will drive digital transformation, augment industry efficiencies and lead to greater economic benefits.