The Department of Telecommunications (DoT) has set its wheels in motion for the upcoming 5G spectrum auction, signaling the potential for further advancements in India’s telecommunications landscape. While the exact timeline remains uncertain, the auction is unlikely to occur in 2023, with a more feasible timeframe falling within the first half of 2024. However, despite the anticipation surrounding the next spectrum auction, it’s important to note that bidding intensity might not reach remarkable heights.
The previous 5G spectrum auction, a landmark event for India, took place in mid-2022, marking a significant step towards ushering in the era of 5G connectivity. Since then, major telecom players have initiated the rollout of 5G services across various regions of the country. The forthcoming spectrum auction will provide these telcos with access to additional airwaves, enabling them to enhance their 5G services and expand coverage to more areas.
The Telecom Regulatory Authority of India (TRAI) has been called upon by the DoT to establish reserve prices for a range of spectrum bands, potentially valued at over 2.5 lakh crore. This reference will pave the way for further discussions, as TRAI prepares to issue a consultation paper addressing the matter in the weeks to come.
The spectrum bands proposed for inclusion in the next 5G spectrum auction span from 600 MHz to 37 GHz, omitting the 6 GHz range due to ongoing deliberations surrounding its allocation. While the exact date of the auction remains uncertain, indications point to a potential timeframe within the first half of 2024. However, despite the enthusiasm surrounding the event, a subdued bidding intensity is anticipated.
The subdued bidding expectations are attributed to the limited number of market players actively pursuing 5G implementation. Among the leading contenders are Airtel and Jio, both of which are actively rolling out 5G infrastructure. In contrast, Vodafone Idea (Vi) and Adani Data Networks have yet to fully utilize the spectrum acquired during the 2022 auctions. As a result, these players are unlikely to pursue additional airwaves in the upcoming auction.
Furthermore, Airtel and Jio secured a substantial portion of the airwaves required for their initial 5G rollouts during the 2022 auctions. This factor, combined with the restrained spectrum utilization from other contenders, suggests that the bidding intensity for 5G airwaves might remain modest in the upcoming auction.
As the telecommunications industry continues to evolve, the preparation for the next 5G spectrum auction highlights the sector’s commitment to expanding connectivity and enhancing the consumer experience. While bidding expectations might be moderate, the potential benefits for both consumers and the industry as a whole remain significant.
