Telecom

5G in India: FM announces details of 5G auction and rollout in the country

The 5G mobile services will be rolled out in the country within FY2022-23. The finance minister said that to achieve this India will hold 5G auctions within the next financial year.

Published:Tue, February 01, 2022 2:20pm

By Meghna Dutta

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Union Budget 2022-23: Finance Minister Nirmala Sitharaman presented Budget 2022 on Tuesday outlining the government's plans in telecom and other major sectors for the year. The finance minister tabling the budget mentioned 5G rollout plans in the country.

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The 5G mobile services will be rolled out in the country within FY2022-23. The finance minister said that to achieve this India will hold 5G auctions within the next financial year. A scheme for design-led manufacturing in 5G will be introduced as part of the PLI scheme that the government runs to boost local manufacturing.

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"Telecommunication in general, and 5G technology in particular, can enable growth and offer job opportunities. Required spectrum auctions will be conducted in 2022 to facilitate the rollout of 5G mobile services within 2022-23 by private telecom providers," the finance minister said. "A scheme for design-led manufacturing will be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme," she added.

Leading telcos Airtel , and Reliance Jio have already trialled 5G services in the country. As per reports, Airtel is said to receive an investment of up to $1 billion from Google, a major part of which will be used for the enhancement of 5G services.

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The government is also said to be discussing with telcos and stakeholders on the spectrum auctions that will set the final phase for the 5G rollout. The announcement pushes the 5G rollout in the country for the masses for another year, however, the Indian smartphone market is already pacing up with the tech and has several offerings across budgets.

Optical fiber for rural areas- Besides 5G, Sitharaman also mentioned about the extent of broadband in rural India. "To enable affordable broadband and mobile service proliferation in rural and remote areas, five per cent of annual collections under the Universal Service Obligation Fund will be allocated. This will promote R&D and commercialization of technologies and solutions," she said.

"Our vision is that all villages and their residents should have the same access to e-services, communication facilities, and digital resources as urban areas and their residents. The contracts for laying optical fiber in all villages, including remote areas, will be awarded under the Bharatnet project through PPP in 2022-23. Completion is expected in 2025. Measures will be taken to enable better and more efficient use of the optical fibre,

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