5G spectrum auction: Centre's announcement on SUC brings big relief to telecom

The government will auction about ₹4.3 lakh crore worth of airwaves capable of offering fifth-generation or 5G telecom services

1 min read . Updated: 22 Jun 2022, 04:44 PM IST Livemint

Last week, telecom minister Ashwini Vaishnaw notified that 5G deployment will commence in 20-25 cities and towns by the year-end

Listen to this article

As India gears up for the 5G spectrum auction, the Centre announced that no SUC i.e. 'Spectrum Usage Charges' shall be charged during the auction process. The news brings huge relief for the telecom service providers (TSPs) as it would sharply reduce their future outflows towards these statutory fees.

"For spectrum acquired through an auction held after 15.09.2021 in different Access spectrum bands, no SUC shall be charged," Department of Telecommunications on Tuesday.

The government will auction about ₹4.3 lakh crore worth of airwaves capable of offering fifth-generation or 5G telecom services, including ultra-high-speed internet, and has also given its nod for setting up of captive 5G networks by the tech firms.

As much as 72 GHz of spectrum will be put on the block during the 5G auction, set to commence on July 26, 2022.

It is pertinent to mention that 5G services will usher in high speeds -- about 10 times faster than 4G -- and spawn new-age offerings and business models.

5G deployment to start from August: telecom minister

Last week, telecom minister Ashwini Vaishnaw notified that 5G deployment will commence in 20-25 cities and towns by the year-end, and India, which has a lower data pricing than the global average, will continue to set rate benchmarks as new services are rolled out. "We are already the lowest in the world, at least by a factor of 10X...10X we are cheaper than the world, that same trend will be in other areas too," he said.