Next generation mobile technology offers huge opportunities. Telecom operators need to be able to buy spectrum bands at competitive rates to take advantage of the subscriber boom.
Next generation mobile technology offers huge opportunities. Telecom operators need to be able to buy spectrum bands at competitive rates to take advantage of the subscriber boom.
India’s 5G moment is yet to come, while many countries across the world have rolled out their next-generation mobile networks.
According to Ookla’s 5G network tracker, the Asian nation is one of the few major countries without a 5G network. It is joined by neighboring Pakistan, Afghanistan, Nepal and Bangladesh to remain on the list of countries that have yet to roll out 5G. Even in financially battered Sri Lanka, 5G coverage is working.
The world’s second largest telecom market is yet to auction 5G spectrum, let alone commercial rollout. Signs of massive awakening are visible, but it has a long way to go as the country may launch 5G mobile services by the end of this year or as early as 2023.
During this year’s budget speech, Finance Minister Nirmala Sitharaman said that 5G mobile services will be launched within 2022-23. “All major telcos including Airtel, Reliance Jio and Vi are testing their 5G networks under various tests. The government is also discussing the spectrum auction to be held this year with telcos and other stakeholders,” said Sitharaman.
The telecom regulator elaborated on its plan to auction airwaves worth around Rs 7.5 lakh crore across multiple bands. TRAI plans to auction both existing and new spectrum bands. The existing bands include 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz and the newer bands 600 MHz, 3300–3670 MHz and 24.25–28.5 GHz.
The country is also working to increase its fiber optical coverage by laying additional million kilometers of fiber optic cables. The coverage is currently 1.5 million kilometres.
The next generation mobile connectivity is expected to unlock the $450 billion economy and make the country more digital. Last year, the global services market for 5G technology was estimated at $83 billion. It is expected to grow by 23% annually to reach $188 billion by 2025.
The Telecom Regulator has recommended that Telecom Service Providers (TSPs) be provided with a block size of 10 MHz for the 3300- 3670 MHz band and 50 MHz for the 24.25-28.5 GHz band and the spectrum bands be assigned in a uniform manner. ,
TRAI has also recommended 35-40% reduction in baseline 5G spectrum pricing after TSPs have repeatedly asked for rationalization of 5G spectrum prices. But the fallacy is for a 20-year license instead of a 30-year license. This means that the effective reduction is somewhere within 10% of the baseline spectrum pricing. It is not clear how companies like Jio, Vodafone Idea and Airtel will respond to this price drop.
Next generation mobile technology offers huge opportunities. According to the India Brand Equity Foundation, over the next five years, India will add 500 million new internet users as mobile phone penetration increases and data costs fall.
Telecom operators need to be able to buy spectrum bands at competitive rates to take advantage of the subscriber boom. And that part of the puzzle is still missing. This will become clear in the next few months as the auctions begin. Until then it will not be a walk in the park, but a bootcamp in the woods.