5G Spectrum auction to begin by September

India has begun to move towards the 5G technology and is planning to auction the 5G spectrum by the month of September. This auction is touted to be the largest auction carried out in India so far, in which 8,293.95 MHz of airwaves would be available for auction at an estimated total base price of Rs.5.77 lakh crore. That is almost 3.5 times the 2,354 MHz of spectrum offered in the auction carried out in 2016, whose total base price was Rs.5.63 lakh crore.

5G is seen as the next big thing in machine-to-machine communication, which enables secure connectivity between devices such as vehicles, sensors, robots, and drones.

As the new government has taken charge of the Department of Telecommunications, hence it may auction the 5G spectrum in the month of September, where the prices are likely to be recommended by the regulator.

In 2016 auction, the government raised nearly Rs.66000 crore as some of the spectrum bands failed to attract bids due to high reserve prices. Airwaves of 5G spectrum are going to be auctioned for some of the top telecom companies such as Vodafone, Reliance Jio, and Bharti Airtel.

Pointing to the low base prices set by countries like South Korea, on a per MHz basis for 5G airwaves, Telecom companies have said that India’s pricing is seven times higher than the prices suggested by Trai, which are entirely unsustainable and very steep.

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