5G Auction | 5G Spectrum : Cabinet clears auction of 5G spectrum

The Union Cabinet chaired by Prime Minister Narendra Modi approved the DoT‘s proposal to conduct spectrum auction through which spectrum will be assigned to the successful bidders for providing 5G services to public and enterprises, the government said in a press release on Wednesday.

A total of 72097.85 MHz of spectrum with a validity period of 20 years will be put to auction to be held by the end of July 2022. The auction will be held for spectrum in various Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) frequency bands.

“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,” the government said.

The government said it is expected that the mid and high band spectrum will be utilised by Telecom Service Providers to roll-out 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.

Aimed at facilitating ease of doing business, the Cabinet said there is no mandatory requirement to make upfront payment by the successful bidders. Companies can make payments for spectrum in 20 equal annual installments which will be paid in advance at the beginning of each year.

The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance instalments.