Spectrum auctions – 5G and the future of connectivity in India

5G networks hold the unique potential to transform India into a USD 5-trillion economy by 2025, and are central to the government’s newly launched Digital India program.

The 5G auctions concluded successfully on August 1, 2022. Marking a positive shift from the previous rounds, these auctions generated revenue of approximately USD 19 billion, representing an increase of 31 percent in the quantum of spectrum sold in comparison to the auction in 2021.

A total of 72GHz was offered for sale amongst telcos – Reliance Jio, Bharti Airtel, Vodafone Idea, and a non-telco group, Adani Data Networks Ltd – and the following bands were on offer: 600MHz, 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, and 2300MHz in low-frequency bands, 3300MHz in mid-bands and 26GHz in high-frequency bands.

The highest bids were for 3300MHz and 26GHz in mmWave. The GSMA had previously underlined the key role of access to mmWave spectrum as critical to the success of 5G in India; so this auction bodes well for the future.

The success of 5G auctions can be attributed to policy reforms recently introduced by the Indian policymakers. This year’s auction saw a lower spectrum reserve price (by 39%) on the recommendation of Telecom Regulatory Authority of India, in line with the GSMA’s calls for the need to make sufficient amounts of affordable spectrum available to ensure the success of 5G in India. Striking the right balance between raising revenues, delivering efficient spectrum awards, and increasing mid-band spectrum allocations is critical.

Furthermore, in September 2021, the Telecom Ministry introduced structural and procedural reforms to boost cash flow in the industry. It introduced a four-year moratorium for the payment of adjusted gross revenue by operators (as ordered by the Supreme Court of India) and a policy of non-levy of spectrum usage charges for spectrum acquired through auctions after September 2021.

The latest GSMA report, Digital Societies in Asia Pacific: Building towards Digital Nations, emphasizes the role of 5G as a key enabler in the journeys of countries aspiring to become true digital nations. 5G enables a range of innovative digitization solutions for consumers and businesses. Futuristic technologies, such as Web 3.0 and metaverse – which is seeing the rise of blockchain adoption, NFTs, crypto curren­cies, etc. – also hinge on the successful implementation of 5G.

How do MNOs build on the momentum created by the auction?
As part of our work in advising governments on requirement for 5G, the GSMA recommends the following:

• Adding 600MHz band to the portfolio of spectrum holdings, which will raise download speeds by 30 to 50 percent in rural areas.
• 2GHz of mid-band is required to provide city-wide capacity and meet the ITU’s requirements for IMT-2020. Without access to the 6GHz band, this goal will be difficult to reach. 5GHz of high-band spectrum for delivering ultra-fast speeds and the lowest latencies in high-capacity mmWave hotspots.

In recent times, the government has undertaken various supportive measures. For example, the proactive initiatives to amend the right-of-way policy and developing a framework for small-cell deployment are welcome steps. As India gets ready for 5G, it should also help to garner support for globally harmonized spectrum at the upcoming 2023 World Radiocommunication Conference. This would help to safeguard the long-term future of 5G for all.