Cabinet approves 5G spectrum auction
Spectrum will be awarded to successful bidders to provide 5G services to the public and businesses.
A total of 72097.85 MHz of spectrum with a validity period of 20 years will be auctioned to be held by the end of July 2022. The auction will be held for spectrum in various low frequencies (600 MHz , 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), medium (3300 MHz) and high (26 GHz) frequency bands.
The auction will be for spectrum in various low, mid and high frequency bands.
It is expected that the spectrum will be used by telecom service providers to deploy 5G technology-based services capable of delivering speeds and capacities that would be approximately 10 times greater than current 4G services.
Successful bidders will be permitted to make payment in 20 equal annual installments, duly protecting the Net Present Value (NPV) at the interest rate of 7.2%.
Spectrum acquired through this auction can be returned after a minimum period of ten years. There will be no Spectrum Usage Charges (SUC) for spectrum acquired in this auction.
The DoT initiated the spectrum auction and a Notice of Inquiry (NIA) was issued on June 15, 2022.
In addition, the Cabinet also decided to allow the development and establishment of private captive networks to stimulate a new wave of innovations in Industry 4.0 applications such as machine-to-machine communications, Internet of Things (IoT), artificial intelligence (AI) in automotive, healthcare, agriculture, energy and other sectors.
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