5G Spectrum Auctions Debut Online With Jio, Airtel, Vi And Adani

The wait is over as India is preparing for the rollout of the 5th generation of mobile network aka 5G. The much-anticipated 5G spectrum auction is all set to debut today in the country. The participants will bid for the 72GHz airwaves to launch 5G services in the country. During the auction, the government will put up the 72GHz aka 72,000MHz airwaves for auction with Rs. 4.3 lakh is the reserve price.

5G Spectrum Auctions Begin Online

The four top telecom operators – Reliance Jio, Bharti Airtel, Vodafone Idea and the latest player in the segment Adani Data Networks are participating in the 5G spectrum auctions. When it comes to the auction, Jio has submitted the highest among others as the earnest money deposit for 5G auctions is Rs. 14,000 crore by Jio, Rs. 5,500 crore by Airtel, Rs. 2,200 crore by Vi, and Rs. 100 crore by Adani. Based on this, the telecom companies will be eligible to bid up to Rs. 1.9 lakh crores in the auctions.

All the available spectrum in 600MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands will be up for the auction. The spectrum that is allotted via this auction can be used for 5G or any other tech within the scope of the Access Service License.

Combining all these, there is a total of 72GHz of spectrum in the auction and the spectrum will be assigned for a period of 20 years. The successful bidders can make payments in 20 equal annual installments, protecting the NPV at an interest rate of 7.2%. The spectrum acquired via this auction can be surrendered post the minimum period of 10 years.

It has been revealed that there will be no Spectrum Usage Charges (SUC) for the spectrum acquired in the auction. As a requirement, successful bidders have to submit a Financial Bank Guarantee and Performance Bank Guarantee.

5G Rollout In India

While the 5G spectrum auctions are going on right now, it is expected that the 5G services will be rolled out in the country by late 2022 or early 2023. Airtel already confirmed that they will launch 5G services within 2-4 months of the auctions.

Already, TRAI has started with the pilot testing of 5G networks in select areas. The four chosen areas include the Delhi airport, Bengaluru Metro, Bhopal and Kandla port. Also, the pilot tests were done in 11 locations in Bhopal using street lights, traffic signals, road signage and city bus shelters. In the other locations, the same will be deployed via street furniture. These trials were conducted by Reliance Jio, Airtel, Vi and BSNL.