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With the start of the 5G era, Communications Minister Ashwini Vaishnaw on Friday expressed confidence that telecom players would be actively involved in the upcoming spectrum auction and make it a success.
Vaishnaw told PTI that this was the right time for the country to move forward with 5G, adding that Indian telcos were determined to embark on this new journey.
“I am confident that telecom players will actively participate in the 5G auction and make it a success,” the minister said.
As TRAI significantly reduced the price of spectrum and issued a decision on the cost of using the spectrum (SUC), “all financial burden on telcos will decrease, going forward”, he noted.
No SUC will be charged for the spectrum obtained from this auction. According to industry estimates, this could give players almost 20-25 percent relief on spectrum costs, in addition to more than the 40 percent price reduction stated by TRAI.
On the issue of closed networks, the minister said the government had complied with TRII recommendations made in consultation with the industry.
“This is the right time for the country to move forward with the 5G journey. At the same time, we have created our own 4G stack. There is a lot of interest in the world, and people are very happy that a reliable source has developed, ”said the minister, adding that the next milestone would be around 5G.
“My discussions show that telcos are very committed to starting this new journey,” said Vaishnaw, noting that 5G would bring more usage cases.
The Department of Communications is set to hold a pre-bidding conference on Monday (June 20), with a major auction scheduled for next month.
On the block will be Rs 4.3 lakh crore airwaves capable of providing fifth-generation or 5G telecommunications services, including high-speed internet. 5G services will bring in much faster speeds – about 10 times faster than 4G – and deliver new age services and business models.
The government has also agreed to establish 5G network networks by major technology companies.
The auction – which includes 72 GHz spectrum – is scheduled to start on July 26, 2022.
The auction will be held in spectrum at various low frequencies (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), middle (3300 MHz) and high bands (26 GHz).
Cabinet approved the 5G auctions at set prices recommended by the Telecom Regulatory Authority of India (TRAI) regional director. TRAI had recommended a 40 per cent reduction in price to sell the 5G spectrum of mobile services, a level previously described as ‘very disappointing’ by COAI as telcos favored 90 per cent lower prices.
Some analysts are of the opinion that spectrum auctions are less likely to see a bidding war and that telecommunications companies may opt for quantum options, after inequalities in service delivery and annual auctions.
While the 5G spectrum of nine bands will be sold to telecom operators such as Bharti Airtel and Reliance Jio, Notice Inviting Applications (NIA) – a bid-related document issued by DoT – said major technology firms would now be allowed to take over. 5G spectrum of their hosted non-public network, by leasing to telecommunications companies.
NIA has said that direct allocations to large technology companies will follow the research of the need and recommendation of the TRAI sector director on issues such as prices and methods for such allocations.
The decision of private networks came as a disappointment for telcos, who argued that if private organizations were allowed to set up private hostage networks with a specific 5G spectrum allocation by the telecom department, the business case of TSPs (Telephone Service Providers) would find it greatly reduced.
Significantly, the Cellular Operators’ Association of India (COAI) – which lists Reliance Jio, Bharti Airtel and Vodafone Idea as its members – did not release a statement following the announcement of a decision at a spectrum auction.
