Cabinet nod for 5G auction; 72097.8 MHz spectrum will be closed by the end of July


New Delhi, 15 July

The Union Cabinet has approved the modalities for auction of 5G spectrum and 72097.85 MHz radio waves will be put in the block by the end of July, an official release said on Wednesday.

The cabinet also approved the development and installation of ‘Private Captive Networks’ to enable the development and installation of ‘Private Captive Networks’ to fuel the wave of innovation in new age industry applications such as Machine-to-Machine Communication, Internet of Things (IoT), Artificial Intelligence (AI). decision made. in the automotive, healthcare, agriculture, energy and other sectors.

“The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the proposal for spectrum auction of the Department of Telecommunications, through which spectrum will be handed over to the successful bidders for providing 5G services to the public and enterprises,” the release said.

A total of 72097.85 MHz spectrum with a validity period of 20 years will be auctioned by the end of July, 2022.

The auction will be conducted 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.

Continuing the pace of reforms in the telecom sector, the Cabinet announced various progressive options with regard to spectrum auctions for ease of doing business.

“For the first time, there is no mandatory requirement to make advance payment by the successful bidders. The payment for spectrum can be made in 20 equal annual installments, to be paid in advance at the beginning of each year, “This has the potential to significantly reduce the cash flow requirements and the cost of doing business in the sector.” hopefully.

The bidders will be given an option to surrender the spectrum after 10 years without any future liabilities in respect of the remaining installments.

“Availability of adequate backhaul spectrum is also essential to enable the roll-out of 5G services. To meet the demand for backhaul, the cabinet has decided to provisionally allot 2 carriers of 250 MHz each in E-band to telecom service providers,” it said.

The cabinet has also decided to double the number of conventional microwave backhaul carriers in the existing frequency bands of 13, 15, 18 and 21 GHz, the release said.

The market is gearing up for the rollout of 5G services, which will lead to ultra-high speeds and new-age services and business models.

Telecom regulator Telecom Regulatory Authority of India (TRAI) in April had recommended a 39 per cent cut in the reserve or minimum price for the sale of 5G spectrum for mobile services.