Analysts see ‘significant’ progress driving 5G

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Market watchers on Wednesday said the much-awaited 5G spectrum auction will bring significant progress for the industry and consumers. However, some said the base price for spectrum remained an issue for the bidders, who were expecting much lower rates.

Piyush Vaish, Partner and Telecom Sector Leader, Deloitte India, said the steps outlined for the auction and bidding will open new avenues for deeper penetration, reach and richer user experience.

He said the government had also announced the auction of millimeter-wave (mm-wave) bands, which would not only help unlock the ‘true’ potential of 5G but also strategically manage costs for operators. will help.

Vaish said, “The roads are now clear for the 5G auction. This is probably one of the most awaited spectrum auctions, which will bring significant progress for the industry and consumers.” Will go under the hammer soon.

Another factor that would lead to a ‘good auction’ was that operators would have the flexibility to surrender spectrum after 10 years without any liability.

“To boost technological advancement, the government has also announced the development of private networks, which will pave the way for Industry 4.0 applications. Together, these steps will open new avenues for deeper penetration and reach, as well as enriched user experiences through consolidation,” he said.

Jaideep Ghosh, Chief Operating Officer, Shardul Amarchand Mangaldas & Co, said the wide availability of spectrum across all bands is encouraging as potential bidders can opt for spectrum bands and quantum as per their strategy.

“Having said that, the base price for spectrum continues to be an issue for the bidders who were expecting a very low price,” Mr. Ghosh said.

The analysts’ comments came after the Union Cabinet approved the auction of airwaves capable of offering fifth-generation, or 5G, telecommunications services, including ultra-high-speed Internet, and gave its approval for large technology firms to set up captive 5G networks. Is.

The government said in an official statement that the auction of spectrum above 72 GHz would be held by the end of July, detailing the decision taken by the cabinet in its meeting held on June 14.

The auction of spectrum will start from July 26, 2022.

The cabinet has approved 5G auction at reserve prices recommended by sector regulator Telecom Regulatory Authority of India (TRAI).

In April this year, TRAI had recommended a reduction in the reserve, or floor, price for the sale of 5G spectrum for mobile services by about 39%, though the industry at that time termed the cost as “too high”.