A six-month extension for 5G trials will likely delay the auction

Telecom operators are expected to receive a six-month extension from the Department of Telecommunications to conduct 5G trials. Now, Reliance Jio, Vodafone Idea and Bharti Airtel have time till May 26 to conduct trials. Permits for conducting trails were drawing to an end on November 26, but the 5G ecosystem needed more time to test out various services.

DoT allocated 5G trial spectrum to telcos six months ago, in the 3.5 GHz, 26 GHz and 700 Mhz bands. This spectrum is being used by telecom operators to develop and test a variety of India-specific use cases either on their own or through strategic partnerships and alliances.

It is likely that this will lead to a delay 5G spectrum auctions, which are targetted to be held in the January-March 2022 quarter.

The DoT is also working with the Telecom Regulatory Authority India, to seek the base price recommendations. According to the recent reserve price, telcos would need to pay ₹50,000 crore to acquire 100 MHz of 5G spectrum in the 3.3-3.6 GHz band, which is needed on average to deploy 5G tech. Telcos have appealed that the price is too high, and the regulator must re evaluate it.

No decision has yet been forthcoming on the vacating of spectrum in the 3300-3400 MHz band by the Ministry of Defence and in the 3400-3425 MHz band by ISRO.
CT Bureau