India is one of the countries that still doesn’t have 5G, but as the cabinet approves the 5G spectrum auction, that could change soon. The spectrum auction is expected to take place at the end of July 2022, after which companies and telecom operators can finally roll out 5G services in India.
Through an official statement, the union government confirmed that 5G will be rolled out faster than when 4G was launched in India seven years ago in 2015. In addition, the statement also mentioned the fact that India has received a major boost from the rapid expansion of 4G services across the country since 2015. It said that eighty crore subscribers can access broadband today compared to ten crore subscribers in 2014.
“The 4G ecosystem created in the country is now leading to 5G indigenous development. The 5G testbed setup in 8 top technology institutes of India accelerates the launch of domestic 5G technology in India. The Production-Linked Incentives (PLI) schemes for mobile phones, and telecom equipment, and the launch of the India Semiconductor Mission are expected to help build a strong ecosystem for the launch of 5G services in India,” the statement said.
A total of 72097.85 MHz spectrum will be auctioned, with a validity period of 20 years. It will be held at 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.
“The mid- and high-band spectrum is expected to be used by telecom service providers to roll out 5G technology-based services capable of delivering speeds and capacities approximately 10 times higher than what is possible through current 4G services.”, read the statement.
Read more: India plans to roll out 6G by 2030, 5G in coming months: PM Modi
5G will be beneficial for telecom operators
The government says 5G services will be more beneficial to operators due to the union government’s reforms to the telecom sector in September last year. In its statement, the government said: “The reforms include zero Spectrum Usage Charges (SUC) on the spectrum acquired during the upcoming auction, providing significant relief to service providers regarding telecom network operating costs. The provision of a financial bank guarantee equal to one annual installment has been abolished”.
Furthermore, the government says successful bidders will not be obliged to make spectrum bid payments in advance. Spectrum payments can be made in 20 equal annual installments, payable in advance at the beginning of each year. According to the government, this is expected to significantly ease cash flow requirements and reduce business costs in this sector. The bidders would have the option to surrender the spectrum after 10 years with no future obligations regarding balance terms.
“The availability of sufficient backhaul spectrum is also necessary to enable the roll-out of 5G services. To meet the backhaul demand, the government has decided to allocate 2 carriers of 250 MHz each in E-band to the Telecom Service Providers for the time being. The cabinet has also decided to double the number of traditional microwave backhaul carriers in the existing frequency bands of 13, 15, 18, and 21 GHz,” the statement reads.
The cabinet has also decided to allow the development and creation of Private Captive Networks to enable a new wave of innovations in Industry 4.0 applications such as machine-to-machine communication, the Internet of Things (IoT), and artificial intelligence (AI ) in the automotive industry. , healthcare, agriculture, energy, and other sectors.