Why the 5G Spectrum Auction is a Big Deal for Telecom Companies

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The auction of airwaves that can provide fifth-generation (5G) communications services has been approved by the Union Cabinet, which is presided over by Prime Minister Narendra Modi. ICRA estimates that the telecom sector would spend between Rs 1-1.1 lakh crore on the 5G spectrum auction.

The Department of Telecommunications made the suggestion (DoT). The Indian government’s clearance of the proposal sends a message to telecom operators that they may now move on with operating their own private 5G networks.

Prior to the spectrum auctions beginning on Tuesday, the Telecom Regulatory Authority of India (TRAI) has started testing 5G networks in four locations with the main telecom service providers. According to TRAI, tiny cells would be essential for India’s 5G deployment because a significant number of small cells will be required to densify the high frequency signals from huge macro towers.

Why 5G will be a game-changer for business

5G will be a game-changer for businesses, bringing with it faster speeds and improved network reliability. This means that companies will be able to process more data in real-time, leading to better customer service and greater efficiency. 5G will also open up new opportunities for innovation, paving the way for advances in fields such as artificial intelligence and the internet of things. So if you’re looking to stay ahead of the curve, make sure your business is ready for 5G.

The speed of 5G services will be ten times that of 4G. PM Narendra Modi demanded quick implementation of 5G services and urged cooperation between the public sector and private sector to achieve this goal. Through economic growth and job creation, the 5G service is predicted to bring 450 billion dollars to the Indian economy over 15 years.

 

Given the lenient payment conditions of the auction, ICRA estimates that the initial outlay for the sector will be close to Rs 10,000 crore. Additionally, it is said that by the end of FY 2022–2023, the industry’s Average Revenue Per User (ARPU) is anticipated to rise by Rs 170. Tariff increases and continuous subscriber upgrades are predicted to be the main drivers.

 

Auction information

On July 26, 2022, the much anticipated 5G spectrum auction for frequencies beyond 72GHz will start. Big businesses will be permitted to lease 5G spectrum from telecom providers for their captive non-public network while the 5G spectrum in nine frequencies will be put up for auction, according to the Notice Inviting Applications (bid-related documents issued by DoT). Tuesday marked the start of the largest-ever spectrum auction in India, with a total of 72 GHz (gigahertz) of 5G airwaves valued at Rs 4.3 lakh crore.

 

“Auctions for a total of 72097.85 MHz of spectrum with a 20-year validity term will be held by the end of July 2022. The government announced the sale in a press statement on Wednesday. “The auction will be placed for spectrum in several bands (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz), and High (26 GHz) frequency bands,” the government stated.

The total market value of the spectrum exceeds Rs 5 lakh crore. The spectrum can be purchased for 20 equal annual payments that are due in advance at the start of each year. After ten years, the bidders will have the opportunity to return the spectrum without incurring any further obligations related to balance payments.

 

The auction’s bidding will take place online using a simultaneous multiple-round ascending methodology. The three largest carriers in India, Reliance Industries (RIL) Jio, Bharti Airtel Ltd., and Vodafone Idea, are anticipated to participate in the auction (VI).

Potential hazards of 5G

The Indian economy depends heavily on the telecom sector, which is predicted to contribute 8% of India’s GDP in 2022. However, there are a few obstacles in the way of the adoption of 5G technology. These are them:

The communication system has to undergo a significant infrastructure overhaul to support 5G.

Another issue can be that telecom firms don’t have enough funds.

Consumers will be financially responsible for upgrading their cellular equipment to make the switch from 4G to 5G more seamless.

The Detrimental Effects of 5G 

As we progress further into the 21st century, technology is becoming more and more integral in our lives. Constant innovation has led to the development of 5G- a new era of wireless communication. As 5G technology starts to roll out, it is important to be aware of the potentially harmful effects that it could have on nature and birds. According to a study by the American Bird Society, 5G technology poses a danger to birds and their habitats. There have been various claims made against 5G advocates about the safety of the technology, including one from 2018 that stated a 5G network test in the Netherlands resulted in the demise of hundreds of birds. The only reasonable explanation is, that it is from the new 5G Microwaves having a huge effect on all birds’ hearts. It heavily resonates with certain ERRATIC PULSED Microwaves (millions per second!) which can be proven to have biological effects on organs!

Due to its usage of extremely high frequency (millimeter-scale) waves that range in frequency from several hundred megahertz to tens of gigahertz, 5G is widely criticized (depending on whether it is low, mid, or high-band 5G)

With so much at stake, we must take steps to ensure that 5G does not irreparably damage our environment.

Conclusion

5G is finally here! But there are still many hurdles to overcome before this new technology can be adopted by Indians. The rollout of 5g in India has been considered a step forward for PM Modi’s dream called “Digital India”, as stated by Communications Minister Ashwini Vaishnav who also happens to head the department dealing with Information Technology & Electronics Development.

A big bid for 5G is expected from Reliance Jio, the dominant telecom in terms of market share, put down the largest earnest money deposit of all the bidders at 14,000 crore rupees. This implies that it will pursue a confrontational approach in the auctions. Adani Data Networks has only put down 100 crore rupees in the meanwhile. This implies that it will choose certain airwaves with a restricted availability for its captive networks. A 5,500 crore rupee earnest money deposit was made by Bharti Airtel. Even while it is far smaller than Jio’s submission, this does indicate that it would be able to easily get pan-India 5G spectrum. However, cash-strapped Vodafone Idea shocked industry observers with their earnest money payment of 2,200 crore rupees. This suggests that it will at least catch a few 5G airwaves, but maybe just in its priority areas.

With this bidding scenario in mind, the question remains how will consumers pay off their financial liabilities if they want access to high-speed internet service? And what kind of infrastructure needs put into place so that everyone involved has enough bandwidth at home or work.

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