The availability of major 5G networks will likely still be months, if not years away
The Government of India has finally approved a proposal from the Department of Communications for 5G spectrum auctions directly to businesses, laying the groundwork for upcoming 5G networks in the region. In an official statement, the government said it will auction a total of 7,2097.85MHz of spectrum with a lifespan of 20 years by the end of July 2022.
The 5G spectrum auction will include spectrum across the low frequency bands (600MHz, 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz), medium (3300MHz), and high (26GHz). The government expects telecom service providers to take advantage of the available medium and high bandwidth to provide services based on the 5G network in the region.
The Indian government says the 5G spectrum auction will reduce business costs for telecom service providers. Notes:
The spectrum auction will benefit from the telecom sector reforms announced in September 2021. The reforms include zero spectrum usage fee (SUC) on spectrum obtained in the upcoming auction, which brings great relief to service providers in terms of operating cost of telecom networks. Moreover, the requirement to provide a financial bank guarantee equivalent to one annual installment has also been abolished.
In addition, the Federal Cabinet has announced various reforms to facilitate doing business. It has dropped the mandatory requirement for upfront payment by the winning bidder, giving them the option to make payments in 20 equal annual installments at the beginning of each year. Bidders will also have the option to give up spectrum after 10 years without any future commitments.
According to Communications Administration (NIA) Notice of Invitation Requests, bidders have until July 8 to submit their applications, after which the Department of Transportation will publish property details to applicants on July 12. July 20, with mock auctions on July 22 and July 23. The actual auction will start on July 26.
What does the 5G spectrum auction mean for the average Indian?
The upcoming 5G spectrum auction is just the first step towards making mainstream 5G networks available. The average Indian will still have to wait months, if not years, for high-speed connections on their 5G smartphones. Successful bidders will likely begin testing their 5G services over the next few months, and we may see a limited number of public releases by the end of the year. The large-scale rollout should follow suit, but it’s all just speculation at the moment.
There is an opportunity for telecom service providers to reveal a more realistic schedule after the auction. However, the three major carriers of India – Vodafone Idea, Bharti Airtel and Reliance Jio – have not shared any official information on the matter.
source: Press Information OfficeAnd the Point
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