5G Spectrum Auction begins today : All you needs to know about it


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Biznextindia : The auction of 5G spectrum in India will start on July 26, with about 72,000 MHz under nine bands up for sale with a validity period of 20 years. Some of India’s richest business tycoons Mukesh Ambani, Gautam Adani, Sunil Mittal are in the race to bid for the 5th generation airwaves.  The department of telecom (DoT) is expected to generate Rs.1 lakh crore from the auction. The Union Cabinet approved the auction on June 15 and allowed non-telecom service providers to bid for spectrum to set up captive 5G networks.

Highlights of the spectrum auction:

  • Spectrum being auctioned: All the available spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands is part of the auction.
  • Technology: Spectrum allotted through this auction can be used for 5G (IMT-2020) or any other technology within the scope of Access Service License.
  • Process of auction: The auction shall be a Simultaneous Multiple Round Ascending (SMRA) e-auction.
  • Quantum: Total of 72097.85 MHz of spectrum has been put to auction.
  • Duration of spectrum: Spectrum will be assigned for a period of twenty (20) years.
  • Payment: Successful bidders will be allowed to make payment in 20 equal annual installments, duly protecting the NPV at the interest rate of 7.2%.
  • Surrender of spectrum: Spectrum acquired through this auction can be surrendered after a minimum period of ten years.
  • Spectrum Usage Charge: There will be no Spectrum Usage Charges (SUC) for spectrum acquired in this auction.
  • Bank Guarantees: The requirement for a successful bidder to submit a Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) has been dispensed with.
  • Captive Non-Public Network: Licensees can set up isolated captive non-public network(s) for industries using the spectrum acquired through this auction.
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