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DoT issues NIA for auction of spectrum for IMT/5G telecom services

The Government of India under the leadership of Hon’ble Prime Minister Narendra Modi is committed to provide affordable, state-of-art high quality telecom services to all the citizens. With considerable success in rolling out widespread 4G services, India is now ready to introduce 5G telecom services in the country.

To facilitate roll-out of 5G and to augment existing telecom services, Department of Telecom has initiated the spectrum auction and Notice Inviting Applications (NIA) has been issued on 15.06.2022.

Highlights of the spectrum auction:

  • Spectrum being auctioned: All the available spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands is part of the auction.
  • Technology: Spectrum allotted through this auction can be used for 5G (IMT-2020) or any other technology within the scope of Access Service License.
  • Process of auction: The auction shall be a Simultaneous Multiple Round Ascending (SMRA) e-auction.
  • Quantum: Total of 72097.85 MHz of spectrum has been put to auction.
  • Duration of spectrum: Spectrum will be assigned for a period of twenty (20) years.
  • Payment: Successful bidders will be allowed to make payment in 20 equal annual installments, duly protecting the NPV at the interest rate of 7.2%.
  • Surrender of spectrum: Spectrum acquired through this auction can be surrendered after a minimum period of ten years.
  • Spectrum Usage Charge: There will be no Spectrum Usage Charges (SUC) for spectrum acquired in this auction.
  • Bank Guarantees: The requirement for a successful bidder to submit a Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) has been dispensed with.
  • Captive Non-Public Network: Licensees can set up isolated captive non-public network(s) for industries using the spectrum acquired through this auction.

CT Bureau

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