In India, the Department of Telecommunications (DoT) has finally announced the much-awaited spectrum auction. The base price will be Rs3.92 lakh crores. The spectrums allocation will be in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands. The Telcos can pay the entire bid in one go or pay 25 percent upfront and the rest in up to 16 annual installments after a moratorium of two years.
“We welcome the government’s decision to kick start the Spectrum Auction from March 1st. This will enable the industry to cater to the exponential increase in data usage, which will facilitate in supporting the Digital India vision. While the Govt. has addressed the requirement for the availability of more spectrum, lowering the reserve prices would have provided additional resources for network expansion to the Telcos,” said Lt. Gen. Dr. SP Kochhar, DG, COAI.
The upcoming sale will boost the bandwidth of Jio. The spectrum availability of 5G is not very clear yet. BSNL is yet to roll out 4G services pan India; this auction can be really beneficial for the Telco. Apart from that, Airtel and Vi must also be looking for extra spectrum to cater to the increased use of mobile services in the recent few months.
Jio had earlier announced that it would launch its 5G services by Q2, 2021. The DoT has to add up 5G spectrum in the upcoming auction or auction the spectrum as “liberalized,” which can be used for both 4G and 5G services.
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