DoT issues eligibility criteria for 5G spectrum auction
Jun 15, 2022
New Delhi [India], June 15 : India is ready to introduce 5G telecom services soon as the Department of Telecom (DoT) on Wednesday issued a notice inviting applications for auction of the spectrum.
In the notice, the DoT has set the eligibility criteria for the 5G spectrum auction. The auction shall be a Simultaneous Multiple Round Ascending (SMRA) e-auction. A total of 72097.85 MHz of the spectrum has been put to auction.
As per the DoT notice, the spectrum will be assigned for a period of 20 years. The spectrum acquired through this auction can be surrendered after a minimum period of ten years.
There will be no Spectrum Usage Charges (SUC) for the spectrum acquired in this auction. The requirement for a successful bidder to submit a Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) has been dispensed with.
Licensees can set up an isolated captive non-public network(s) for industries using the spectrum acquired through this auction.
The successful bidders will be allowed to make payments in 20 equal annual installments, duly protecting the NPV at the interest rate of 7.2 per cent.
As per the notice, 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.
Spectrum allotted through this auction can be used for 5G (IMT-2020) or any other technology within the scope of Access Service License, the DoT said.
"On behalf of the President of India, applications are invited from prospective bidders who meet the eligibility criteria for participating in the Auction. Based on the Applications, the Government shall prequalify Applicants who meet the eligibility criteria for participation in the auction," DoT said in the notice.
The Department of Telecom issued the notice after the Union Cabinet chaired by Prime Minister Narendra Modi approved a proposal to conduct a spectrum auction through which spectrum will be assigned to the successful bidders for providing 5G services to the public and enterprises.
Spectrum is an integral and necessary part of the entire 5G eco-system. The upcoming 5G services have the potential to create new-age businesses, generate additional revenue for enterprises and provide employment arising from the deployment of innovative use-cases and technologies, according to an official statement released after the cabinet meeting.
It is expected that the Mid and High band spectrum will be utilised by Telecom Service Providers to roll-out of 5G technology-based services capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services.
