5G auction: Day 1 bids exceed Rs. 1.45 lakh crore
The second day of India's first 5G spectrum auction has started with the fifth round now underway. Four rounds of bidding took place yesterday. The bid amount on the first day exceeded Rs. 1.45 lakh crore and spectrum allocation should be completed by August 15. To recall, 72GHz of airwaves at a base price of Rs. 4.3 lakh crore is up for grabs.
Why does this story matter?
The 5G spectrum auction in India involves a millimeter wave band (mmWave) that lies between 24-100GHz. These short-wavelength waves deliver higher speeds and low latencies. Separately, the Centre has garnered over Rs. 1.45 lakh crore from just the first day of bidding. This is more than the Rs. 1.09 lakh crore revenue collection from the 4G spectrum auction in 2015.
'5G services should be rolled out by 2022-end'
Telecom Minister Ashwini Vaishnaw described the participation of the bidders in the auction as "strong" and said that 5G services should be available in many cities by the end of 2022. He claimed that the 3,300MHz and 26GHz bands received keen interest from the buyers. Bids were also received for the 700MHz airwave, but the identity of the bidders is yet to be disclosed.
How much spectrum is on offer?
The Centre is selling 5G spectrum in various frequency bands, including low (600MHz, 700MHz, 800MHz, 900MHz, 1,800MHz, 2,100MHz, 2,300MHz, and 2,500MHz), mid (3,300MHz), and high (26GHz). Winning bidders do not have to submit Performance Bank Guarantee (PBG) and Financial Bank Guarantee (FBG). The spectrum will be assigned for 20 years and spectrum usage charges (SUC) have been waived off.
Who are the players involved?
Reliance Jio, Airtel, Vodafone Idea, and Adani Data Networks are the four parties involved in the bid. This marks Adani's entry into the telecom industry. These firms will likely purchase mid and high-band spectrum to roll out 5G technology-based services across the country. Pilot testing of 5G network has already been started by telcos as well as the Telecom Regulatory Authority of India (TRAI).
How fast is the 5G network?
As per the US-based think tank Bipartisan Policy Center, a 5GB movie can be downloaded in 35 seconds using 5G. Using 4G, it takes 40 minutes, two hours for 3G, and almost three days via 2G.
