5G spectrum public sale for telecom providers will get Cabinet nod

The Cabinet Wednesday gave its nod to conduct 5G spectrum public sale for telecom providers and get rid of upfront fee for airwaves. The profitable bidders pays for 5G spectrum in 20 EMIs, an official assertion mentioned.

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

A complete of 72097.85 MHz of spectrum with 20 years of validity will probably be auctioned by July finish.

The Cabinet additionally determined to allow the event and organising of ‘Private Captive Networks’ to spur a wave of innovation in new-age business purposes akin to machine-to-machine communications, Internet of Things (IoT), Artificial Intelligence (AI) throughout automotive, healthcare, agriculture, vitality, and different sectors.

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The public sale will probably be held for spectrum in varied 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 tempo of telecom sector reforms, the Cabinet introduced varied progressive choices with regard to the spectrum public sale, for facilitating ease of doing enterprise.

“For the first time ever, there is no mandatory requirement to make upfront payment by the successful bidders. Payments for spectrum can be made in 20 equal annual instalments to be paid in advance at the beginning of each year,” it mentioned, including that is anticipated to considerably ease money circulate necessities and decrease the price of doing enterprise on this sector.

The bidders could be given an choice to give up the spectrum after 10 years with no future liabilities with respect to steadiness 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,” it mentioned.

The Cabinet additionally determined to double the variety of conventional Microwave backhaul carriers within the current frequency bands of 13, 15, 18 and 21 GHz bands, the discharge mentioned.

The market is gearing up for the rollout of 5G providers, that may usher in ultra-high speeds and spawn new-age providers and enterprise fashions.

Telecom regulator Telecom Regulatory Authority of India (Trai), in April, had beneficial a few 39 per cent discount within the reserve or flooring value for the sale of 5G spectrum for cellular providers.

(With Inputs from PTI)