COVID-19 impact: 5G auction timelines may be pushed to next year

India’s dreams to embrace 5G technology may be pushed back by a few quarters due to the chaos in the wake of the COVID-19 pandemic. 5G is the fifth generation of cellular networks, and it is expected to be one of the fastest wireless technologies ever created. The Department of Telecom was aiming to launch 5G auctions in India by June 2020.

However with the coronavirus pandemic derailing normal economic activity across the globe, the auction may be pushed to the end of 2020 or even next year.

“DoT has given telecom operators a clear indication that the 5G auctions will no longer happen in the earlier decided time frame of June 2020,” a source familiar with the development told CNBC-TV18.

“No new timeline has been given but it is unlikely to happen before  October- December 2020 or even January- March 2021. Most likely it will happen only by next year,” the source said.

A DoT official, who did not wish to be named, confirmed the delay and added that a formal notification is also likely to telecom operators soon. However, a timeline may not be specified owning to the uncertainty caused by COVID-19.

“The priority of the government is to ensure data and voice operations are seamless at this time and the country does not face any major issues on bandwidth in the lock down and work from home environment,” the source said.

Another source said the reserve prices could be reworked and that the DoT may be open to revising prices given the stress in the telecom sector. While data consumption has risen sharply, telecos have had to invest to keep their network and infrastructure up to date with the new requirements that come with the lockdown.

“The decision on pricing will be taken only after the COVID-19 situation eases,” the second source said.

However with telecom companies already stretched with high debt and liabilities, and investments to be 5G ready, their ability to participate in the auctions may have been affected further. The government was planning to sell 8303.95 MHZ of 4G and 5G spectrum in the auctions and raise approximately Rs 5.23 trillion from auctions at current base prices.

―CNBC TV18