By: Tech Desk
Last Updated: July 27, 2022, 08:33 IST
New Delhi, India
India is preparing for the fifth generation of mobile network (5G) as the 5G spectrum auctions begin starting today. Top carriers Reliance Jio, Bharti Airtel, Vodafone Idea, and new entrant Adani Data Networks will all bid for 72Ghz airwaves to be able to launch 5G services in India. During the 5G spectrum auction, the government will put up over 72,000Mhz (72GHz) airwaves for auction, with the reserve price being a whopping Rs 4.3 lakh crores. The 5G spectrums will have a validity of 20 years. Telecom companies will bid on spectrum bands, which are in three categories – Low, Mid, and High. The auction will start today and is Read More
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Firms run by tycoons Mukesh Ambani, Sunil Bharti Mittal and Gautam Adani bid about Rs 1.45 lakh crore to buy fifth-generation (5G) airwaves on the opening day of India's largest-ever spectrum auction on Tuesday. Telecom Minister Ashwini Vaishnaw said the response on the first day of the auction exceeded all expectations and will surpass the records of 2015, when revenue collection from auction stood at Rs 1.09 lakh crore.
Day 1 saw 4 rounds of bidding involving Jio, Airtel, Vi, Adani. Round 5 of bidding to continue on July 27.
The 5G Spectrum Auction Process has now entered round 2. Telecos are not aggressively and competitively bidding. The bidding likely to be concentrated around mid-Band, high-band spectrum
Bharti Airtel Chairman Sunil Mittal has said that the company will be at the forefront of bringing 5G connectivity to India with a powerful network to support the country’s digital-first economy. The comments from Mittal assume significance as the countdown for 5G spectrum auctions has begun.
A total 72 GHz (gigahertz) of radio waves worth at least Rs 4.3 lakh crore will be put on the block during the auction, scheduled to begin on July 26. Read more.
The Telecom Regulatory Authority of India (TRAI) has started pilot testing of 5G network in select areas.The four areas chosen by the telecom body are Delhi airport, Bengaluru Metro, Bhopal and Kandla port. As per the report by ET Telecom, the pilot test were done across 11 locations in Bhopal, using traffic signal, street lights, road signage and city bus shelters, according to a report by The Economic Times.
In addition to the this, the 5G cells were also deployed through the street furniture at the GMR International Airport in Delhi, MG Road Metro station in Bengaluru and a few others. These trials were conducted by Reliance Jio, Airtel, Vodafone Idea and even BSNL, as per the report.
Highlights of the spectrum auction:
Spectrum being auctioned: All the available spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands is part of the auction.
Technology: Spectrum allotted through this auction can be used for 5G (IMT-2020) or any other technology within the scope of Access Service License. Process of auction: The auction shall be a Simultaneous Multiple Round Ascending (SMRA) e-auction.
Quantum: Total of 72097.85 MHz of spectrum has been put to auction.
Duration of spectrum: Spectrum will be assigned for a period of twenty (20) years.
Payment: Successful bidders will be allowed to make payment in 20 equal annual installments, duly protecting the NPV at the interest rate of 7.2%. Surrender of spectrum: Spectrum acquired through this auction can be surrendered after a minimum period of ten years.
Spectrum Usage Charge: There will be no Spectrum Usage Charges (SUC) for spectrum acquired in this auction.
Bank Guarantees: The requirement for a successful bidder to submit a Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) has been dispensed with.
Captive Non-Public Network: Licensees can set up isolated captive non-public network(s) for industries using the spectrum acquired through this auction.
With the 5G spectrum auctions taking place now, it is expected that 5G services will be rolled out later this year itself, or by early 2023 at the latest. Earlier this year, the Airtel CTO had said that the telecom operator will launch its 5G services within 2-4 months after the auctions are concluded.
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. These bands are capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services.
Earnest Money Deposit For 5G auctions: Jio – Rs 14000 crore, Bharti Airtel- Rs 5500 crore, Vi – Rs 2200 crore, Adani – Rs 100 crore
Government to put up 72GHz for auction, reserve price pegs value at Rs. 4.3 lakh core. Spectrum Bands:
Low – 600 Mhz, 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz, 2500 Mhz
Mid – 3.3-3.67 Ghz
High – 26 Ghz
Reliance Jio is expected to spend the most in 5G spectrum auction that will start today at around 10 am, followed by Bharti Airtel.
The 5G spectrum auction will begin on Tuesday with four players, including Reliance Jio and Bharti Airtel, set to bid for 72 GHz of radiowaves worth Rs 4.3 lakh crore on offer. The bidding process is scheduled to start on Tuesday from 10 am and go on till 6 pm.
Reliance Jio, Bharti Airtel, Vodafone Idea, and Adani Group are the four major companies taking part in the 5G spectrum auction. The four companies have all deposited a combined Rs 21,800 crore in Earnest Money Deposit (EMD). Reliance Jio has submitted an EMD of Rs 14,000 crore, Airtel has submitted Rs 5,500 crores, Vi has put up Rs 2,200 crores, and Adani Data Networks has deposited Rs 100 crores. Based on this EMD, the telecom companies will be eligible to bid up to about Rs. 1.9 lakh crores.
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