InvestorQ : How will the government decision to sell 5G spectrum make a difference?
Niti Shenoi made post

How will the government decision to sell 5G spectrum make a difference?

ishika Banerjee answered.
3 weeks ago

The Indian government will auction 72.098 GHz of spectrum in July 2022 with validity period of 20 years. This spectrum will hold the key to 5G which supports higher end usage of bandwidth like streaming videos, application of artificial intelligence, machine learning etc. There are several advantages that the government has offered in this round. There will be no spectrum usage charge (SUC) for the spectrum acquired via this auction. Also, the successful bidders will not have to pay upfront amounts for this spectrum.

Here is the special story of the spectrum allocation. The spectrum will be in 3 categories. Such categories include Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) bands. There only be the payment of one-time spectrum fee to the government and no payment of either the upfront charge or the spectrum usage charges (SUC). The payments can be made in 20 annual instalments in the form of advance payments at the start of each year.

The action will now shifts to the government which plans to conduct the auctions in the month of July 2022. This will be the first big step by the Indian government to graduate people to the 5G spectrum usage. This will help create the requisite ecosystem that will leverage the use of 5G spectrum in the Indian context.