comscore Govt approves 5G spectrum auction, bid to commence on July 26

Govt approves 5G spectrum auction: 5G internet to roll out soon in India

The govt has announced that for the first time ever, there is no mandatory requirement to make upfront payment by the successful bidders

5G Spectrum Auction

The Indian government has approved the 5G spectrum auction. With this process, the govt will officially kickstart the rolling out of 5G services to the public and enterprises in India. The dates have also been revealed by the Department of Telecom (DoT) via the Notice Inviting Applications. The 5G spectrum auction will commence on July 26, 2022. The DoT has also revealed the timetable for the auction process. Also Read - Volkswagen Virtus launched in India at Rs 11.21 lakh: Check variants, other details

The last date to submit applications is July 8 and the list of applicants will be made public on July 12. The mock auctions will happen on July 22 and July 23. The DoT will also be conducting a pre-bid conference and the Venue and Date/time of the conference will be notified
on DoT website separately. Also Read - Indian govt to roll out indigenous 5G tech by August 2022: Devusinh Chauhan

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. Also Read - Vivo, ZTE under govt scanner for financial irregularities: Report

It is expected that the Mid and High band spectrum will be utilised by Telecom Service Providers to roll-out of 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.

The spectrum auction will be benefitted by the Telecom Sector Reforms announced in September, 2021. The reforms include zero Spectrum Usage Charges (SUC) on the spectrum acquired in the upcoming auction, providing a significant relief to the service providers in terms of the operating cost of telecom networks. Further, the requirement of submitting a financial bank guarantee equivalent to one annual instalment has also been done away with.

According to a statement by the Ministry of Communications, the 4G ecosystem created in the country is now leading to 5G indigenous development. The govt claims that the 5G test bed setup in the eight top technology institutes of India is speeding up the launch of domestic 5G technology in India. Additionally, 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 India.

The govt has announced that for the first time ever, there is no mandatory requirement to make upfront payment by the successful bidders. Under this year’s auction, the payments for spectrum can be made in 20 equal annual installments to be paid in advance at the beginning of each year. The govt claims that this move is expected to significantly ease cash flow requirements and lower the cost of doing business in this sector. The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance installments.

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  • Published Date: June 15, 2022 1:45 PM IST

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