Cabinet approves Auction of IMT/5G Spectrum

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Auction of IMT/5G Spectrum- Relevance for UPSC Exam

Auction of IMT/5G Spectrum: Cabinet approved Auction of IMT/5G Spectrum. 5G auction policy is important as it comes under Governance, Administration and Challenges- Government policies and interventions for development in various sectors and issues arising out of their design and implementation of UPSC Mains GS Paper 2.

Auction of IMT/5G Spectrum in News

Recently, the Union Cabinet 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 5G services to public and enterprises.
To facilitate roll-out of 5G and to augment existing telecom services, Department of Telecom has initiated the spectrum auction and Notice Inviting Applications (NIA) has been issued on 15.06.2022.

DoT Notice Inviting Application for Auction of IMT/5G Spectrum

Highlights of the spectrum auction of IMT/5G Spectrum are:

Spectrum being auctioned: 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.
Technology: Spectrum allotted through this auction can be used for 5G (IMT-2020) or any other technology within the scope of Access Service License.
Process of auction: The auction shall be a Simultaneous Multiple Round Ascending (SMRA) e-auction.
Quantum: Total of 72097.85 MHz of spectrum has been put to auction.
Duration of spectrum: Spectrum will be assigned for a period of twenty (20) years.
Payment: Successful bidders will be allowed to make payment in 20 equal annual instalments, duly protecting the NPV at the interest rate of 7.2%.
Surrender of spectrum: Spectrum acquired through this auction can be surrendered after a minimum period of ten years.
Spectrum Usage Charge: There will be no Spectrum Usage Charges (SUC) for spectrum acquired in this auction.
Bank Guarantees: The requirement for a successful bidder to submit a Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) has been dispensed with.
Captive Non-Public Network: Licensees can set up isolated captive non-public network(s) for industries using the spectrum acquired through this auction.

India’s First 5G Testbed

What is 5G technology?

About: 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
- It works in 3 bands, namely low, mid and high frequency spectrum — all of which have their own uses as well as limitations.
Different 5G Bands and their Usage:
- The maximum speed in the low band spectrum is 100mbps. So, while it can be used and installed for cell phone users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for specialised needs of the industry.
- The mid-band spectrum offers higher speeds compared to the low band. It, however, has limitations in terms of coverage area and penetration of signals.
- The high-band spectrum offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.