Cabinet approves sale of 5G Spectrum in India for private networks to join

Union Cabinet has decided on the sale of 5G spectrum and has decided the date for the auction.

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The Union Cabinet has confirmed on Wednesday the sale of 5G spectrum airwaves which are approximately 72097.85 Mhz that would be put up for sale on July 26. The document which lays down the guidelines and rules of procedure for private companies to buy a stake in the 5G spectrum has notified that bidders can apply for the sale by July 8.

Many changes have been brought to the functionality as well. In the statement given by the government, the spectrum will be allowed for a validity period of 20 years. Moreover, the payment for the spectrum can be made in 20 equal installments. The various spectrums up for auction range between low(600 MHz, 700 MHz, 800MHz, etc) to mid-range(3300MHz) and end up in the high spectrum range of (26GHz).

Cabinet approves sale of 5G spectrum

“It is expected that the Mid and High band spectrum will be utilized by telecom service providers to roll out of 5G technology-based services capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services,” the government said in a statement.

The mandatory requirement of making an upfront payment. During the buy of the spectrum by successful bidders has been removed to make leeway. Giving significant relief to carriers operating costs. The annual statement of installment or a similar financial statement has also been removed from the requirements of bidders.

The bidders of the spectrum have also got an out in respect. Also giving up the spectrum after 10 years with no future liabilities concerning balancing the investments. These developments will lead to an ease in the cash flow requirements. As well as would ease the cost of doing business in the sector.

The Cabinet has provisionally allocated 2 carriers of 250 MHz to meet the backhaul demand to the telecom service providers. Cabinet had also decided that the traditional microwave. Moreover, carriers in the existing frequency bands of 13, 15, 18, and 21 GHz can be doubled for functionality. In the end, the Cabinet had also decided to enable the development and setting up of private captive networks. The government has expressed its urge to stir up the innovation process in the field of communications.