The auctions for the deployment of the 5G spectrum has initiated in India for a nationwide 5G roll-out. They are supposed to be concluded over the next few days and hopefully by the month-end. A spectrum with a 20-year time frame with a validity of over 72 GHz is up for auction. The spectrum auction includes spectrum in several frequency bands having both low (600 GHz, 700 GHz, 800 GHz, 900 GHz, 1800 GHz, 2100 GHz, and 2300 GHz) and high (26 GHz).
There have been claims about the speed of 5G by the government that it will be about ten times faster than the 4G we’re currently using. It will bring an enormous change to the telecommunication industry. Now, after speculation by DOT (Department of Telecommunication), the 5G service will be established in India in 2020 as you know, the auctions have already started.
It is also claimed by the department of telecommunications that the 13 cities all over the country will get the chance to establish 5G at first. Then it will slowly expand over the other parts of the country as there are many parts of the country where there are places with no 4G connectivity and last week Jio established 4G connectivity in a town named Pangong Lake in the Ladakh region. The cities that will get the 5G are Delhi, Gurugram, Gandhinagar, Mumbai, Pune, Jamnagar, Lucknow, Bengaluru, Chennai, Chandigarh, Hyderabad, Kolkata, and Ahmedabad.
Currently, there is no information about the telecom operator corporation, which will be the first to commercially and successfully deploy this 5G spectrum services in India. The leading telecom operator firms such as Airtel, Jio, and Vi (Vodafone and Idea) have already initiated setting up their trial sites in mentioned cities.
The Department of Telecommunication has collaborated with eight agencies that are IIT Bombay, IIT Delhi, IIT Hyderabad, IIT Madras, IIT Kanpur, IISC Bangalore, Society for Applied Microwave Electronica & Engineering, and Center of Excellence in Wireless Technology, for the national 5G test bed project initiated in 2018.
The Department anticipated a price range of 70,000 crores to 1,00,000 crores from the 5G spectrum auctions that would usher in great new age offerings and innovative business models which would enable high-speed connections, and generate high revenue for various enterprises, and provide employment emerging from the allocation of innovative use-cases and technologies. The biddings are expected to last for about two days. The 72 GHz will be worth 4.3 lakh crore INR.
It is also anticipated that Mukesh Ambani’s Jio will be leading the expense, followed by Bharti, and Airtel while there is meager participation seen from Vodafone Idea (Vi) and Adani Group. Reliance Jio has an Earnest Money Deposit of 14,000 crores, while its competitor Adani Group has made a minor deposit of 100 crore INR. There would be less chance of aggressive bidding as there are only four participants in the race. While Reliance Jio may be intensely bidding in the auctions, there is not any major bidding by Adani Group.
The government is searching for various measures to cut off the expense of performing business for Telecommunication Service Provider firms. It announced reforms in the telecom sector in September 2021, which will serve as a huge benefit for this spectrum auction. The reform comprises zero Spectrum Usage Charges (SUC) on the spectrum that will be purchased in the coming auctions. The telecom Service providers will be receiving a significant relief from SUC being the cause as it will reduce their operational costs for them. It will be seen as an immense revolution in the telecom industry, providing many opportunities for providers and consumers.
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