The Union Cabinet on Wednesday approved e-auction of 5-G spectrum, paving the way for private operators to operate 5G networks.
Following the decision, the Department of Telecom lost no time in issuing a notice inviting applications for auction of 72 GHz of spectrum, with the goal of rolling out 5G internet services by July end; 5G is expected to be 10 times faster than 4G.
The notice of auction is for 20 years and the bidders will be given an option to surrender the spectrum after 10 years with no liabilities. The cabinet also said that for the very first time “there is no mandatory requirement to make upfront payment by the successful bidders.” Payment is allowed in 20 equal annual instalments to be paid in advance every year. This is to ease cash flow requirements and lower the cost of doing business.
The auction is expected to see three main operators -- Vodafone Idea, Bharti Airtel Ltd and Reliance Industries Ltd’s Jio – in the fray. But, under the proposal, tech companies will also be able to bid for bandwidth - a proposal that has split the industry, reports a wire service.
Spectrum is an integral and necessary part of the entire 5G ecosystem. The upcoming 5G services have the potential to create new age businesses, generate additional revenue for enterprises and provide employment arising from the deployment of innovative use-cases and technologies.
This will be an important policy initiative of the government in tandem with programmes such as Digital India, Start-up India and Make in India. It will promote access to mobile banking, online education, telemedicine, e-ration etc, the DoT said.
Telecom regulator Telecom Regulatory Authority of India, in April, had recommended about a 39 per cent reduction in the reserve or floor price for the sale of 5G spectrum for mobile services.
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,” the release added.
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