5G Launch In India Delayed As Spectrum Auction Pushed Back

Last Updated on June 13, 2022 by Anu Joy

India’s 5G auction was scheduled for early June, and as most government tasks, the auction will be delayed. The auction could be postponed to mid-July, as the government will be mulling over the issue of private 5G networks.

5G Auction Delayed Yet Again

A senior official shared that the government initially planned on leasing 5G spectrum bands to private companies. However, some firms have been asking for direct allocation of 5G airwaves. This unexpected request has put a spanner in the works, delaying the 5G auction. Consequently, 5G rollout in India will also be pushed to a later date.

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The official said that the request “will be taken to the Cabinet. They will take a call along with other decisions”. After the Cabinet decides on key issues such as the spectrum bands to be auctioned and their prices. Following this, the department of telecommunications will discuss various aspects of the auction. It could take two to four weeks before it issues the formal document announcing the auctions. Bidding on the 5G spectrum will commence at least 45 days from when the notice is issued.

BIF Seeks Direct Allocation Of 5G Bands

The allocation of private 5G networks has sparked a war of sorts between the Broadband India Forum (BIF) and telecom companies. BIF includes private companies such as Tata Consultancy Services Ltd, Meta, and Amazon India. It made a case for private 5G networks claiming that such a system will be a big revenue generator for the government. It tried to address concerns regarding security by stating that these networks are closed and disconnected from public telecom networks, thus posing no threat.

Furthermore, BIF noted in a position paper that the government should reserve some bands for direct allocation in each type of spectrum band. It said, “Allow direct allocation of spectrum to enterprises/organizations at a nominal administrative fee, as per global best practices”.

“Facilitate a light-touch online portal based paperless regime for acquiring permission/license for ‘Captive Wireless Private Network (CWPN)’ within 30 days of application (as recommended by TRAI) to enable ease of doing business,” the BIF added.

Indian Telcos At Loggerheads With BIF

Indian telcos, however, are against the idea of directly allocating 5G airwaves to private companies. The telecom companies say that it will threaten their business since they will be left with no incentive for providing 5G services.