Private networks row may further delay 5G spectrum auction: Report

The divergent views of telecom operators and technology companies on spectrum for setting up captive private wireless networks is likely to further delay the 5G spectrum auction, BusinessLine reported citing industry sources.

Allocation of spectrum to private networks users has been ruled out from the upcoming auction, but the technology companies have made representations to the government through their industry bodies arguing that the move could “damage the process of digitisation of the economy and the prospect of making Indian products competitive in the global market”, the report added.

A Department of Telecommunications (DoT) official told the publication that the government is yet to decide on the auction details.

The Digital Communications Commission (DCC), an inter-ministerial panel with the telecom secretary as its chairman, had on May 17 approved the 5G spectrum auction as per the Telecom Regulatory Authority of India (TRAI)’s recommendations on base prices. The proposals were likely to be put up before the Cabinet the next week after May 17.

However, the Cabinet has not approved the proposals yet. It can take at least 45 days from the date of Cabinet approval to issue the notice inviting applications (NIA) and conduct meetings with stakeholders.

This is likely to breach the June-end auction timeline as prescribed by the telecom minister, Ashwini Vaishnaw.

Broadband India Forum, an industry group of technology companies like Apple, Facebook, Google, Microsoft, and others has urged the government to provide spectrum for private networks through administered allocation route at nominal rates, or give it for free.

“We should think of the country, the consumer…it is the benefit of the consumer, efficiency of the enterprise and finally improvement of the economy. It (spectrum) is strictly for captive usage for improvement of efficiency,” TV Ramachandran, President at BIF, was quoted as saying by the publication.

The government plans to auction over 1 lakh units of spectrum across 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3.3-3.67 GHz and 24.25-27.5 GHz bands, valued at around Rs 5 lakh-crore. The value is for spectrum given out for 20 years. The price for 30 years spectrum use would be 1.5 times the 20-year rates, the regulator has said.

On April 11, Trai had recommended a reserve price of Rs 317 crore a unit for airwaves in the premium 3.3-3.67 GHz 5G band (also known as C-band), a 36% reduction to its last recommendation in 2018. It had also cut the recommended price for the coveted 700 MHz spectrum by 40%, to Rs 3,297 crore a unit. On average, Trai cut prices across bands by around 39%.