Spectrum auctions to take place in March after 5 yrs

NEW DELHI: The government will finally auction spectrum in March next year, after a gap of five years, but has decided to withhold sale of the coveted 5G spectrum for now, despite the push by Prime Minister Narendra Modi and industry leader Reliance Jio.

The Union Cabinet

gave approval to the sale of a total 2,251MHz of spectrum, worth Rs 3.9 lakh crore at the reserve price, and hoped that the measure will help meet the industry’s demand for additional airwaves in view of growing consumption. Also, companies such as Airtel,

Vodafone Idea

and Reliance Jio will have the chance to buy replacement spectrum for certain airwaves the term of which is ending.

To kick-start the auction process, the telecom ministry plans to issue the notice-inviting applications (NIAs) this month, telecom minister Ravi Shankar Prasad said.

Industry sources said the government may be preparing for a separate 5G auction, considering the interest in the highspeed technology globally and need for

robust networks

after the outbreak of coronavirus.

Modi, in a recent interaction with the telecom industry, spoke about the need for deploying the latest networks. “The future holds great potential with the rapid technology progress. We need to work together to ensure a timely roll-out of 5G to leapfrog into the future and empower millions of Indians.”

Reliance Jio, which has become the telecom industry leader in a period of just four years with 400 million subscribers, has also been asking for auction of 5G airwaves. Speaking at the inaugural session of the India Mobile Congress (IMC) earlier this month, Reliance chairman Mukesh Ambani said India is one of the largest digitally-connected society, and now needs to upgrade to faster technologies to move further ahead in speed and experiences.

Airtel and Vodafone Idea, however, have been cold to prospects of an early 5G auction, emphasising that the government should first take interest in nursing the industry back to its health. They have said reserve price of the technology suggested by regulator Trai is very high, making any participation unviable.