Adani Joins 5G Race – Burning Issues

Table of Contents

What has happened?

It’s official. Billionaire Gautam Adani-led group has confirmed its surprise entry into the race to acquire telecom spectrum.
This will pitch it directly against Mukesh Ambani’s Reliance Jio and telecom czar Sunil Bharti Mittal’s Airtel.
This will be the groups, had till recently not had a direct face-off.
While the former expanded from the oil and petrochemicals business into telecom and retail, the latter diversified from the ports segment to coal, energy distribution and aviation.
And now, if the Adani group participates in the 5G auction on July 26, it will be the first direct competition with Ambani.

“As India prepares to roll out next generation of 5G services through this auction, we are one of the many applications participating in the open bidding process,” the group said in a statement.
“We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations,” the statement added.

Fifth-generation or 5G telecom services auctions are set to start on July 26, the department of telecom notified in its notice of inviting applications (NIA).
The Cabinet, last month, approved 5G auctions at reserve prices recommended by the sector regulator Telecom Regulatory Authority of India (TRAI).
The regulator had recommended an about 39% cut in floor price for the sale of 5G spectrum for mobile services.

A total 72,097.85 MHz of spectrum with a validity period of 20 years will be put on auction from July 26.
The auction will be held for spectrum in the frequencies of 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 3,300 MHz and 26 GHz bands.

“It is expected that the Mid and High band spectrum will be utilised by telecom service providers to roll out 5G technology-based services,
Capable of providing speed and capacities which would be about 10 times higher than what is possible through the current 4G services,” an official statement said.

At reserve price, the entirety of the spectrum is valued at over Rs 5 lakh crore.
Last year, the government had announced a telecom sector relief package, and some facets of the scheme have been included in the terms of this auction.
A mandatory requirement to make upfront payment by the successful bidders has been done away with for the first time.
Payments for spectrum can be made in 20 equal annual installments to be paid in advance at the beginning of each year.
The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance installments.
The government will also not collect any spectrum usage charge on airwaves auctioned in this round, and the requirement for bank guarantees and financial guarantees has been done away with.

The government has also cleared the path for tech companies to acquire spectrum directly from it to test and build industry 4.0 applications such as machine-to-machine communications, Internet of Things, artificial intelligence, etc.
These networks will not be accessible to the general public.
DoT said it will undertake demand studies and thereafter seek TRAI recommendations for direct assignment of spectrum to such enterprises.

Q) Which country deployed the first 5G network?