Home / Companies / News /  Cabinet approves 5G auctions by July-end, gives nod to private networks
Listen to this article

NEW DELHI : The Union Cabinet on Wednesday approved auction of 5G airwaves which will be part of the total 72097.85 MHz of spectrum that will be put on sale on July 26. According to the notice inviting applications, the formal document that lays down the auction guidelines and procedures, bidders can apply by July 8.

In a statement, the government said that the spectrum will be allotted for validity period of 20 years, and payments for spectrum can be made in 20 equal annual instalments.

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.

"It is expected that the Mid and High band spectrum will be utilised by telecom service providers to roll-out of 5G technology-based services capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services," the government said in a statement.

Further, there will be no mandatory requirement to make upfront payment by the successful bidders, the government said, giving significant relief to carriers' operating costs. The requirement of submitting a financial bank guarantee equivalent to one annual instalment has also been done away with.

This is expected to significantly ease cash flow requirements and lower the cost of doing business in this sector. The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance instalments.

The availability of sufficient backhaul spectrum is also necessary to enable the roll-out of 5G services.

To meet the backhaul demand, the Cabinet has decided to provisionally allot 2 carriers of 250 MHz each in E-band to the telecom service providers. The Cabinet also decided to double the number of traditional microwave backhaul carriers in the existing frequency bands of 13, 15, 18 and 21 GHz bands.

The Cabinet also decided to enable the development and setting up of private captive networks. The government said this will spur a new wave of innovations in Industry 4.0 applications such as machine to machine communications, Internet of Things (IoT), Artificial Intelligence (AI) across automotive, healthcare, agriculture, energy, and other sectors.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout