Cabinet approves 5G auctions by the end of July and gives private networks the green light.
The Union Cabinet approved the auction of 5G airwaves on Wednesday
Bidders can apply by July 8th, according to the notice soliciting applications, the legal document that lays out the auction parameters and processes.
The Union Cabinet approved the auction of 5G airwaves on Wednesday, which will be part of a total spectrum sale of 72097.85 MHz on July 26. Bidders can apply by July 8th, according to the notice soliciting applications, the legal document that lays out the auction parameters and processes.
The government stated in a statement that the spectrum will be allotted for a 20-year validity term, with payments made in 20 equal annual installments.
Spectrum in the Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz), and High (26 GHz) frequency ranges will be auctioned.
"It is projected that telecom service providers would use the Mid and High band spectrum to roll out 5G technology-based services capable of providing speeds and capacities that are around 10 times better than what is now possible with 4G services," the government said in a statement.
Furthermore, the government stated that successful bidders will not be required to make an upfront payment, which will provide significant relief to carriers' operational costs. The obligation to present a financial bank guarantee in the amount of one annual installment has also been removed.
This is projected to reduce the cost of doing business in this sector by dramatically easing cash flow constraints. The bidders would have the option of giving up the spectrum.
After ten years, with no future obligations for balance installments,
The availability of adequate backhaul spectrum is also required for the deployment of 5G services.
To fulfil backhaul demand, the Cabinet has decided to award two 250 MHz E-band carriers to telecom service providers on an interim basis. In addition, the Cabinet resolved to quadruple the number of classic microwave backhaul carriers in the existing 13, 15, 18, and 21 GHz frequency bands.
The Cabinet also resolved to make it possible for private captive networks to be developed and established. This, according to the government, would spark a new wave of advancements in Industry 4.0 applications like as machine-to-machine communications, the Internet of Things (IoT), and Artificial Intelligence (AI) in the automotive, healthcare, and other industries.
Last month, the Digital Communications Commission (DCC) – an inter-ministerial panel that is the top decision-making wing of the not – had largely stuck to the regulator’s recommended base prices for 5G airwaves, while backing a telecom department panel view of auctioning airwaves for 20 years.
On April 11, Trail had recommended a reserve price of Rs 317 crore a unit for airwaves in the premium 3.3-3.67 GHz 5G band (also known as C-band), a 36% reduction to its last recommendation in 2018. It had also cut the recommended price for the coveted 700 MHz spectrum by 40%, to Rs 3,297 crore a unit. On average, Trail cut prices across bands by around 39%.
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