It is official. The consortium led by billionaire Gautam Adani has identified its unexpected entry in the race to acquire the telecommunications spectrum. This will will directly oppose Mukesh Ambani‘S Reliance Jio and the king of telecommunications Sunil Bharti Mittal‘S Airtel. These will be the groups that until recently have not had a head-to-head match. While the former expanded from the oil and petrochemicals business into telecommunications and retail, the latter diversified from the port segment to coal, energy distribution and aviation. And now, if Adani’s group participated in the 5G auction on July 26, which will be the first direct competition with Ambani.
What did Adani The group said
“As India prepares to roll out the next generation of 5G services through this auction, we are one of many applications participating in the open bidding process,” the group said in a statement. “We are participating in the 5G spectrum auction to provide network solutions along with enhanced cybersecurity in airport, port and logistics, power generation, transmission, distribution and manufacturing operations. different,” the statement added.
When will the 5G auction take place?
Auctions of fifth-generation or 5G telecommunications services will begin on July 26, the telecommunications ministry announced in its invitation to applications (NIA). The Cabinet, last month, approved 5G auctions with the starting price recommended by the industry regulator Telecommunications Regulatory Authority of India (TRAI). The regulator has recommended a reduction of about 39% of the floor price for the sale of 5G spectrum for mobile services.
All telecom service providers are in the race for 5G spectrum
Reliance Jio, Airtel and Vodafone Idea and Adani Group have applied. Adani Group recently received National Long Distance (NLD) and International Long Distance (ILD) licenses.
How much spectrum will be auctioned
A total of 72,097.85 MHz of spectrum worth at least Rs 4.3 lakh will be included in the block in the auction. Auctions will be held for spectrum in multiple low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), medium (3300 MHz) and high (26 GHz) bands. .
When are 5G services due to roll out
5G services in India are likely to launch in the last quarter of the year.
What is spectrum validity?
The term of the spectrum license is 20 years. Contractors will be offered an option to waive spectrum after 10 years with no future liabilities on balance installments. No SUC (spectrum usage fee) is charged for spectrum obtained in this auction.
What are the 5G payment terms for telecom companies
In general, the payment terms have been relaxed for auction participants in the upcoming auction. For the first time, there is no mandatory upfront requirement of successful bidders. Payments for spectrum can be made in 20 equal annual installments and paid in advance at the beginning of each year, an easing that is expected to significantly ease cash flow requirements and reduce business costs business in this field.
While 5G spectrum in nine frequency bands will be auctioned to telecom operators, Notice Invitation Application – tender related document released by Telecommunications department – said tech companies would be allowed to use 5G spectrum for their captive non-public networks under leases from telecom companies. The tender document states that direct spectrum allocations to technology companies will follow a demand study and industry regulator recommendations TRAI on aspects such as pricing and allocation methods such as: so.
(With agent input)