India may miss Jan-Mar 2022 5G auction timeline

The authorities will miss its January-March timeline to conduct an public sale of 4G and 5G airwaves except the telecom regulator sends in its pricing suggestions by November. If there’s a delay, then the Department of Telecommunications (DoT) will conduct the 5G sale afterward in 2022 however might not wait till the fourth quarter of the following fiscal yr.

“The regulator has to send pricing recommendations by November and if that happens then auctions can be held in the January-March quarter of 2022,” stated an individual conscious of the event.

The DoT has just lately despatched a reference to the Telecom Regulatory Authority of India (Trai), looking for recent beginning costs for current 4G and 5G spectrum bands, plus for brand new bands just like the millimetre wave frequencies in 26 GHz and 28 GHz bands that additionally assist 5G expertise.

Trai will now have to get again to the telecom division on the pricing, in addition to different factors reminiscent of particulars of the public sale and amount to be put up on the market.

“If the November timeline is not met, then sale will happen anytime in the year,” the particular person stated. The authorities had just lately stated that it expects the following spectrum sale in January-February of 2022. It has additionally stated that the federal government is working to present telcos a set schedule for auctions – reminiscent of holding a sale yearly within the January-March interval of the fiscal – to assist operators plan investments.

The DoT has sought suggestions for a gamut of airwave bands, together with key ones like 700 MHz, 3.3-3.6 GHz and the coveted millimeter waves. It has additionally sought recent base costs for 4G airwave bands reminiscent of 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz, which will also be used for 5G sooner or later.

Industry consultants say the November deadline will likely be powerful for Trai to stick to, since there are plenty of forwards and backwards between TRAI, business and the DoT earlier than the ultimate pricing is accepted. After a DoT reference, Trai conducts a course of which features a four-week interval for stakeholders to submit their views after a session paper is floated, adopted by two weeks for counter feedback. Then TRAI holds open-house discussions earlier than arriving at its suggestions. The entire course of traditionally takes about four-five to months.

Lowering the bottom value of 5G spectrum is vital to the success of the auctions, say business executives and consultants. The present base value of Rs 492 crore for a unit of 5G spectrum within the 3.3-3.6 Ghz band has been deemed too costly by all three non-public gamers – Bharti Airtel, Reliance Jio and Vodafone Idea (Vi). The telcos have additionally sought a lower within the value of the 700 MHz band.

For the federal government, the following auctions are additionally necessary for the much-needed income it is going to herald, particularly now that telcos like Vi and Airtel are anticipated to go for a four-year spectrum and adjusted gross income (AGR) cost moratorium, which was just lately allowed by the federal government.

The authorities garnered Rs 77,814 crore within the final spectrum public sale in March 2021 however bought solely 37% of the over 2300 items of airwaves throughout seven bands on sale as telcos gave the 700 MHz band a miss for the second successive sale, once more citing its excessive beginning value. In the October 2016 public sale, the federal government had collected Rs 65,789 crore. TGI