With the Union Cabinet approving the proposal to conduct a spectrum auction, India is soon to get a strong ecosystem for the launch of 5G services which will likely to about 10 times faster than 4G.
To boost digital connectivity, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal of the Department of Telecommunications to conduct a spectrum auction through which spectrum will be assigned to the successful bidders for providing 5G services to public and enterprises. IT Minister Ashwini Vaishnaw said the 5G spectrum auction is the beginning of a new era for the Indian Telecom.
Taking to Twitter, Vaishnaw said, “Moving forward with PM Narendra Modi ji’s vision of a Digital India.
Spectrum auction announced today is an integral part of developing the ‘Bharat Ka 5G’ ecosystem. No mandatory requirement to make upfront payment by the successful bidders. Payments in 20 equal annual instalments. Relief in bank guarantee.”
“In line with the Telecom Reforms in September 2021, zero Spectrum Usage Charges (SUC) on the spectrum acquired in the upcoming auction. Continuing the Telecom Reforms, development and setting up of Private Captive Networks will be enabled,” he said.
According to the Centre, the 5G test bed setup in 8 top technology institutes of India is speeding up the launch of domestic 5G technology in India. The PLI (Production-Linked Incentives) schemes for mobile handsets, telecom equipments and the launch of the India Semiconductor Mission is expected to help build a strong ecosystem for the launch of 5G services in the country.
Spectrum is an integral and necessary part of the entire 5G ecosystem. The Centre believes 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.
A total of 72097.85 MHz of spectrum with a validity period of 20 years will be put to auction to be held by the end of July 2022. The auction will be held for spectrum in various Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) frequency bands.
It is expected that the Mid and High band spectrum will be utilised by telecom service providers to roll out 5G technology-based services capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services.
