Auction with 5G spectrum bands

What are the conditions for using new mobile technology? How is the release planned?

The Union Cabinet, led by Prime Minister Narendra Modi, approved a spectrum auction that could be used to provide 5G services, at its meeting on June 14. A total of 72,097.85 MHz (or 72 Ghz) spectrum with a legal spectrum for 20 years will be sold during the auction scheduled for the end of July. The auction will be held at various Low spectrum (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) bands. It is expected that the Mid and High band spectrum will be used by telecom service providers (TSPs) to deliver 5G services where the speed will be 10 times higher than possible with current 4G services. This follows the announcement of 2022 budget by Finance Minister Nirmala Sitharaman that the government will sell telecom spectrum by 2022, which will enable independent players to roll out 5G services before March 2023.

When will the spectrum be sold?

Auctions are scheduled to start on July 26. The Telecommunications Department has invited bids from bidders to participate in the auction. Based on the applications, the government will first qualify applicants who meet the eligibility criteria.

When will the commercial release take place?

Telecom Minister Ashwini Vaishnaw recently said the 5G deployment is likely to start from August-September this year, and the service should start in about 20-25 cities by the end of the year.

Experts and analysts anticipate a gradual rollout of 5G nationwide in phases over the next two to three years, with the first release from the second half of the current year.

“Given the user’s public statements, emerging 5G device penetration and limited usage cases, we expect a gradual release of 5G by telcos over the next 2-3 years,” according to a Credit Suisse note. Similarly, Nomura in the research paper said government assistance measures, such as the reduction of spectrum (SUC) expenditure on future spectrum auction and the suspension of deferred spectrum payments and the Adjusted Gross Revenue (AGR) to be made much easier. 5G rollout in India. “… we think the release of 5G will start with 2HCY22F. However, in view of the emerging 5G ecosystem and emerging operating cases, we think the rollout of 5G could be a nightmare for metro and major cities, ”added Nomura.

What are the important issues?

Two industry issues highlighted at future auctions are high prices of a wide variety and direct distribution of spectrum in companies setting up confidential private networks.

The government has accepted the recommendations given to the Telecom Regulatory Authority of India (TRAI) regarding the fixed prices of spectrum auction. Although TRAI had previously recommended a reduction in the price of airwaves for all different bands by 35-40% of the previously proposed base price, call operators expressed disappointment in view of their need for a 90% reduction. For these prices, a 5MHz spectrum block (paired) 700MHz band will cost R196bn (US $ 2.5bn), a 50MHz block band 3.4GHz will cost ₹ 159bn (US $ 2bn) and a 400M block on the 26GHz band. will cost ₹ 28bn (US $ 0.4bn), ”according to Credit Suisse.

In line with the direct allocation of the spectrum of non-public networks, the government has stated that the move will promote a new wave of Industrial 4.0 applications such as machine-to-machine communication, Internet of Things (IoT), Artificial Intelligence (AI) across automotive sectors. , health, agriculture, energy and more. However, the Cellular Operators Association of India (COAI), which lists three independent telcos as its members, said the move greatly undermined the TSP’s business case. “This will reduce revenue so that there will be no active business case left over from TSPs and there will be no need to remove 5G networks by TSPs,” he said ahead of a Cabinet decision.

What are the potential benefits of 5G?

5G next generation mobile technology that will provide fast and reliable communication with ultra low latency. According to the set standards, with 5G, the maximum network speed is expected to be around 2-20 Gbps as opposed to 25 Mbps on current 4G networks. In India, however, the average 4G speed is around 6-7 Mbps, but it is growing slowly.

It is expected that with 5G technology, consumers will be able to download heavy data content such as 8K movies and games with better images in a few seconds. Users will need to upgrade to 5G-enabled devices to access the network, if they have not already used one. However, it is possible that the primary use of technology will surpass the delivery of services on personal mobile devices. 5G is expected to build the core of emerging technologies such as IoT and machine-to-machine communication, thus supporting a much larger range of applications and services, such as telephone surveys and real-time data analysis. The very low latency offered by 5G makes the technology desirable in such usage situations. Delay is the amount of time the data takes to move between its source and destination.

As reported by the government panel on 5G, even after the introduction of 5G in Indian networks, the first-generation mobile technology – 2G, 3G and 4G, will continue to be used and may take 10 years or more to be phased out. . 5G is expected to create a growing $ 1 trillion economic impact on India by 2035, the report said.