5G spectrum auctions get Union Cabinet nod. Here are 5 key highlights

The Union Cabinet has accepted the telecom division’s proposal to conduct 5G spectrum auctions in July. A complete of 72,097.85 MHz of spectrum with a validity interval of 20 years will likely be put to public sale to be held on July 26, 2022. The Department of Telecommunications (DoT) has issued a discover inviting purposes for potential bidders within the public sale.

Here are 5 key highlights of the proposed spectrum auctions:

1. The spectrum being auctioned this time is valued at greater than Rs 5 lakh crore on the base worth as advisable by the Telecom Regulatory Authority of India (TRAI). In the earlier public sale carried out in March 2021, the federal government offered the rights to make use of airwaves to telecom corporations for Rs 77,820.81 crore.

2. For the primary time, there is no such thing as a obligatory requirement to make upfront cost by the profitable bidders. Payments will be made by successful bidders in 20 equal month-to-month instalments. In case they go for upfront cost, a moratorium of two years is obtainable. This is anticipated to assist corporations ease money movement necessities.

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3. The authorities has allowed the organising of personal captive networks, the place tech corporations will be capable of purchase spectrum instantly from the DoT to arrange networks to check and construct Industry 4.0 purposes resembling machine-to-machine communications, the web of issues (IoT), synthetic intelligence, and so on.

4. As a part of the Centre’s reduction bundle for telecom corporations introduced final 12 months, no spectrum utilization cost is being levied on airwaves being put beneath the hammer on this spherical of auctions.

5. The bidders can even be given an choice to give up the spectrum after 10 years with no future liabilities with respect to stability instalments, the federal government mentioned.