3-Aug-2022: 4G, 5G and E-Band Spectrum
The Government is facilitating Indian technology companies for the development of 4G, 5G and E-Band spectrum products and solutions through various initiatives including funding, hackathon, pilots.
There are indigenous technology companies who are working on different system of 4G, 5G and E-Band network products. The Government has approved the funding for the 5G and E-Band technologies under its Digital Communication Innovation Square (DCIS) scheme with defined milestones and deliverables.
In line with Atmanirbhar initiative of the Government, BSNL was directed to deploy Indian Core for 4G network. BSNL conducted a detailed Proof of Concept (PoC) of indigenous 4G technologies in its network. Indian entities viz. Tejas, C-DoT supported by M/s TCS for system integration have successfully completed majority of the standards requirements for a carrier class 4G mobile network in line with 3GPP specifications.
To promote manufacturing of Telecom and Networking products in the country, the Government has notified Production Linked Incentive (PLI) Scheme on 24.02.2021 with financial outlay of Rs. 12,195 crores over scheme period. The scheme is targeted to boost domestic manufacturing of specified telecom and networking products which includes 4G/5G products. With the objective to build a strong ecosystem for 5G, the scheme guidelines have been amended to facilitate design-led manufacturing of 5G products in the country.
The Department of Telecommunications (DoT) hosted a 5G Hackathon in developing solutions to enhance the technology adoption and create new use cases using 5G technology capabilities. DoT has selected 30 top applicants who have been connected with Telecom Service Providers for demonstration of their products/applications in the 5G trials.
The Government has also approved the funding to carry out pilots of the 4G and E-Band products in rural areas under the pilot scheme of Universal Service Obligation Funding (USOF). The pilot projects are envisaged to provide mobile coverage and extend high speed connectivity in rural areas.
The Government also funded development of an indigenous 5G testbed by prominent academic and research institutions working in the space of the technology. It can be used for testing indigenous products, anywhere in the 5G chain, and also for enabling technology proliferation for Indian entities.
16-Dec-2020: Cabinet approves Auction of spectrum
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi, has approved a proposal of the Department of Telecommunications to conduct spectrum auction through which spectrum will be assigned to the successful bidders for providing commercial mobile services.
The auction will be for spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz frequency bands. Spectrum will be offered for assignment for validity period of 20 years. A total of 2251.25 MHz is being offered with total valuation of Rs. 3,92,332.70 crore (at reserve price).
By winning right to use spectrum through the auction, incumbent telecom service providers will be able to augment their network capacity whereas new players will be able to start their services.
In the auction, bidders will have to comply with parameters/conditions e.g. block size in which bidders will be able to submit their bids, spectrum cap i.e. the maximum amount of spectrum that can be held by each bidder after the completion of the auction, roll-out obligations, payment terms etc.
Successful bidders may pay entire bid amount in one go (upfront) or may exercise an option to pay a certain amount (25% for spectrum won in 700 MHz, 800 MHz, 900 MHz bands or 50% for spectrum won in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront and remaining amount in a maximum up to 16 equated annual instalments, after a moratorium of two years.
In addition to the bid amount, successful bidders will also have to pay 3% of the Adjusted Gross Revenue (AGR) excluding wireline services as spectrum usage charges for the spectrum won through this auction.
Spectrum auction is a transparent process of spectrum assignment to successful bidders. Sufficient spectrum availability increases the quality of telecom services for the consumers.
It is relevant that the Telecom Sector today is a key infrastructure provider with strong linkages with economic growth, direct and indirect employment generation and expansion of Digital India. Hence the above decision of the Cabinet is expected to have a salutary impact on all the aspects.