Indian Telecos and Private Businesses Gearing up for 5G Auction

Friday, July 08, 2022 Edit this post

By IndraStra Global News Team

Cover Image Attribute: Image by F. Muhammad from Pixabay
Cover Image Attribute: Image by F. Muhammad from Pixabay 

The recommendations for the future 5G spectrum auctions have been accepted by the Union Cabinet (the highest executive body of the Government of India), and it has been decided to give businesses direct access to spectrum for their own 5G network requirements. However, the telecom industry has not received this kindly. Reason: The enterprise market is expected to account for a sizable portion of 5G revenue. The latter, however, considers it to be a forward-looking strategy, and it would act game-changer for the world's second-largest cellular market, which accounts for over one billion people as mobile phone subscribers.

Private 5G networks are a replica of public 5G networks; however, connectivity is restricted to a single location, such as a factory, port, or campus. This ensures that the 5G standard's security and ultra-low latency can be utilized to their full potential in various supplementary services.

Until recently, India's telecoms services were provided by specialized firms in a market dominated by Vi (merger of Vodafone and IDEA Cellular), Bharti Airtel Limited, and Reliance Industries Limited's Jio, all members of the telecom organization Cellular Operators Association of India (COAI). All three corporations are anticipated to participate in the upcoming auction on July 27. But, under a plan adopted on June 15, tech firms will also be able to bid on network bandwidth for private use, a notion that has divided the industry. Telcos have reported that, based on global trends, 40% of 5G revenue comes from the enterprise sector. Therefore, they are concerned that they will lose this portion of their income.

The government plans to roll out 5G by the spring of 2023. 5G can provide data speeds approximately ten times faster than 4G and is deemed essential for upcoming technologies such as autonomous vehicles and artificial intelligence.

NOTE: APT 600 MHz bands from 612 to 703 MHz, C-band spectrum from 3300 to 3670 MHz, and mmWave spectrum from 24.25-28.5 GHz will be used for 5G. Due to a shortage of network equipment for these frequencies, high device costs, limited availability of modules, and other factors, it is unlikely that the APT 600 bands will gain much traction in this auction. The sub-6 GHz band, specifically the 3300-3670 MHz bands, which correspond to the 3GPP's n78 band, will be the primary focus of the auction. This aligns with global momentum and ensures economies of scale, device availability, and affordability. The n78 band will also assure little interference and disturbance with satellite broadcast providers that operate in the 3800-4200 MHz frequency range.

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IndraStra Global: Indian Telecos and Private Businesses Gearing up for 5G Auction
Indian Telecos and Private Businesses Gearing up for 5G Auction
By IndraStra Global News Team
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