Is It Time For 5G Spectrum Auction?

The next round of spectrum auction, including 5G, is slated to take place this year. If successful, it will help the government mop up revenues and improve India’s fiscal deficit situation.

But at a time when the industry’s debt stands at around Rs 7 lakh crore, the lack of alacrity by the telecom industry is palpable. Both Airtel and Vodafone have expressed concerns over the high reserve price of the 5G spectrum as recommended by the telecom regulator and requested to postpone the auction to 2020.

Interestingly, in one of the earlier auctions, 700 MHZ band, mainly used for 4G services, remained unsold due to its high reserve price, which has now been reduced by the regulator. Telecom players may look to strengthen their 4G spectrum portfolio, rather than buying 5G spectrum. The 5G trials are expected to start in next 100 days and the government expects 5G to become a reality by 2020.

India wants to be at par with global countries for launching next generation services 5G. But the fact is that 5G technology deployment needs huge fiberisation. Only one-fourth of towers in India are fiberised while globally, it is 70-80%. Also, 5G will be a niche service and mainly target segments such as healthcare and education. Its uses specific to India are yet to be developed

Given the existing conditions, only time will tell if the auction will be successful.―DNA India