The government expects to earn between Rs 80,000 and 100,000 crore from auctioning 5G waves in July, sources told CNBC-TV18 on Friday. A total of 72 gigahertz (GHz) of spectrum with a validity period of 20 years would be auctioned.
However, a report from a research firm on Thursday said a large majority of the spectrum will likely remain unsold. IIFL Securities said the three telecom operators – Reliance Jio, Bharti Airtel and Vodafone Idea – are likely to spend only around Rs 71,000 crore in the auction.
Bidding is scheduled to begin on July 26, and the Department of Telecommunications (DoT) has already issued a notice inviting applications.
The auction will focus on spectrum in the low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.
According to the sources, demand is good in the medium and high frequency bands.
“It is expected that the mid- and high-band spectrum will be used by telecommunications service providers to deploy 5G technology-based services capable of delivering approximately 10 times the speed and capacity of what is possible through the services. current 4G,” the government said. said earlier.
It would levy a zero spectrum usage charge (SUC) on acquired spectrum and telecom operators would not be required to make an upfront payment. The membership fee can be paid in 20 equal instalments.
Telecom operators should move quickly to roll out 5G services which are expected in Indian urban centers by mid-2023, the sources added.
First post: STI