5G in India: Understanding 5G spectrum auction and process involved
India is on the verge of getting its 5G network. The Union Cabinet headed by Prime Minister Narendra Modi has allowed the Department of Telecommunications (DoT) to conduct the auction for the 5G spectrum. The auction will have a total of 72,097.7MHz of spectrum up for grabs. Now, let's take a deep dive into what this auction means for our country.
First, everything to know about the auction itself
The auction for the 5G spectrum will take place by the end of July. A total of 72,097.85MHz will be up for grabs this time. All the major telecom players will take part in the auction to obtain the rights for 5G spectrum for the next 20 years. This time around, enterprises looking to set up private captive networks will also be involved.
Why an auction?
The Indian government owns all public resources within its geographical boundary, which also include airwaves. These airwaves, called spectrum, are auctioned to eligible buyers. It is the buyer's responsibility to set up the infrastructure to transport the waves from one end to the other.
Who are the stakeholders involved?
When it comes to a spectrum auction, there are multiple stakeholders involved. First, the seller or the Union Government, which is represented by the DoT in the process. Then, there are the buyers or the service providers. In India, the major service providers are Jio, Airtel, and Vi. Last but certainly not least, we have the public who are the end-users.
What are the different bands on offer?
For the 5G spectrum auction this time, various bands are on offer. They are 600MHz, 700MHz, 900MHz, 1,800MHz, 2,100MHz, 2,300MHz, mid (3,300MHz), and high (26GHz) frequency bands.
5G mmWave spectrum will increase the speed and decrease latency
This year's 5G spectrum auction will involve millimeter wave band (mmWave) as well. The government's decision to involve them in the auction has invited criticism from certain sections. The mmWave lies between 24GHz and 100GHz. These short-wavelength waves are apt for delivering superior speeds and low latencies. They are mired in controversy because they are mostly used by satellite communication network players.
Private captive networks will be beneficial for Industry 4.0
The fourth Industrial Revolution or Industry 4.0 envisions rapid change to technologies and industries as a result of the increasing interconnectivity and cyber automation. 5G is expected to be the catalyst of this revolution in India. Private captive networks, specifically, will provide higher efficiencies to the manufacturing process. Enterprises will be able to realize their potential without having to compromise on their needs.
What is a private captive network?
Private captive networks will be set up by big tech companies for applications such as machine-to-machine learning, AI, and Internet of Things. These networks will be limited to a specific geographical area. They can obtain the spectrum for lease from telecom companies.
The companies can pay for spectrum in 20 equal installments
The auction for 5G spectrum will begin on July 26. The government is yet to reveal the reserve or floor prices for the sale of 5G spectrum In April, TRAI had suggested a 39% reduction in the floor price. The companies wanted a 90% reduction. However, they get a chance to pay the amount in 20 equal installments at the beginning of the year.
