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5G Auction Plan May Run Into Bandwidth Issues

In what seems to be a sudden jolt to the sentiment in the already ailing telecom sector, dark clouds have covered the future of 5G auction in India.

The 5G auction, which was originally on the telecom ministry’s 100-day agenda, seems to be getting delayed. The companies which were already in the backfoot due to huge spectrum prices have yet another reason not to bid for 5G spectrum.

This time the reason is the unavailability of the desired bandwidth.

No Wavelength

  • 5G spectrum is up for auction in 3.3 GHz to 3.5 GHz band in which Defence has asked for 100 MHz
  • The Met Department and Isro have demanded 25 MHz, which leaves only 175 MHz available for commercial usage

5G spectrum is up for auction in 3.3 GHz to 3.5 GHz band. In this band, Defence has asked for 100 MHz for their needs and the Meteorological Department and Indian Space Research Organisation have demanded for 25 MHz.

This leaves only 175 MHz available for commercial usage.

According to sources, at least 100 MHz should be given to one company for proper functioning. The source further added that looking at the current situation in the industry it seems highly unlikely that the companies would participate in the 5G auction, rather they would be more interested in 4G spectrum.

To add to the telecom sector woes, sources said that municipalities and panchayats are charging more money for fibre laying and tower erection.

The source said they are charging over and above the normal registration fee, which ranges from Rs 15,000 to Rs 30,000.

This extra cost is at least Rs 5 lakh in places like Delhi, a source said.

The Union Telecom Ministry had on Monday issued a request for proposal (RFP) and invited bidders to submit applications for the selection of an agency to conduct the e-auction of 5G spectrum.  The auction will be conducted in 22 telecom service areas and would be the biggest in India.―DNA India

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