5G auctions begin on July 26; private networks get level-playing field

NEW DELHI,JUNE 16:  Decks were cleared on Wednesday for 5G spectrum auctions to provide services to the public and enterprises both, with the Cabinet approving a proposal by the Department of Telecommunications for its rollout.

A total of 72,097.85 MHz of spectrum with 20-year validity will be up for grabs when the auctions begin on July 26. The Cabinet ignored the demand of telecom operators to reduce the base price of spectrum and not allow private enterprises to have their own 5G network.

Analysts believe it will enhance the debt of telcos. Telecom operators had asked for a 90% cut in the reserve price and also urged the ministry not to provide direct 5G network to private enterprises as it will impact their business.

The Telecom Regulatory Authority of India had suggested about 39% cut in floor price, which was seen as deeply disappointing by the industry. According to the DoT, 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 Cabinet decided to allow setting up and development of private 5G captive networks as it will spur a new wave of innovations in Industry 4.0 applications such as machine-to-machine communications, Internet of Things, Artificial Intelligence across automotive, healthcare, agriculture, energy and other sectors. Private enterprises hailed the government decision to allow them to have their own captive network.

The Broadband India Forum, which has members like CISCO, Amazon, Microsoft and Intel, said it would lead to better efficiency, productivity and output for the enterprises, accelerate digitisation, boost capabilities, propel indigenous manufacturing and eventually garner greater economic gains for the country.

Rs 4.31L crore value at reserve price

The airwaves, at the reserve prices recommended by the telecom regulator, are valued around Rs 4.31 lakh crore.

-TNIE