5G spectrum auctions will be held this fiscal, says Prasad
NEWDELHI: Amid widespread concerns over exorbitant pricing of radiowaves including 5G, telecom minister Ravi Shankar Prasad on Monday promised “reforms” in spectrum pricing and said that auctions will take place in the current financial year.
Speaking at the India Mobile Congress 2019, Prasad said the government was aware and alive to some problems and challenges being faced by the industry.
“Spectrum auctions will be done this financial year... We are undertaking some reforms in spectrum pricing,” he said.
The Telecom Regulatory Authority of India (Trai) had last year recommended auction of about 8,644 MHZ of telecom frequencies, including those for 5G services, at an estimated total base price of ₹4.9 lakh crore, but the financially-stressed industry that is buckling under high debt, had argued that proposed prices are unaffordable and exorbitant.
Some industry players had pointed out that the average price of 5G band auctioned in countries like South Korea, Spain, the UK and Italy comes o u t t o b e ₹ 8 4 c r o r e / MHZ, whereas Trai’s recommended price for the same band is 5 to 6 times higher at ₹492 crore/mhz.
Meanwhile, Vodafone Idea chairman Kumar Mangalam Birla on Monday said a thriving telecom sector was vital for building a new digital India, and asked the government to ensure an “enabling regulatory environment”.
“While we stand committed to support the growth of the industry, we seek enabling regulatory environment to ensure that necessary investments are made,” Birla—who is also the chairman of Aditya Birla group—said at the India Mobile Congress 2019.
Stating that India’s broadband user base of 600 million is second only to China, Birla said artificial intelligence (AI), Internet of Things (IOT) and robotics will drive the next wave of digital growth.
“The world will witness growth of connected devices,” he said adding that tectonic shifts in technology will change business landscape too.
He said Digital India 2.0’s objective is to build a new India and achieve the $5 trillion economy.
Meanwhile, Bharti Enterprises vice-chairman Rakesh Bharti Mittal while speaking at event said 75% of cost of deploying optical fibre in the country for high speed broadband is the fees charged by local authorities.
“Current reserve price is seven times higher than the global peers’. When we look at the entire ecosystem that needs to be built, user cases for 5G technology needs to be built. This high price coupled with more capex deployment on sites and fibre is going to take a toll on telecom sector,” Mittal said.
He said currently average revenue per user in telecom sector in India is around $1.5 compared to $36 in the US and $6.5 in China.