5G Spectrum Auction of 72,097.85 MHz will be auctioned for 20 years. Apart from Adani Group, Reliance Jio, Bharti Airtel, Vodafone Idea will also bid for spectrum.
The process of auctioning 5G spectrum in the country has started from Tuesday. With the largest spectrum auction ever, it is being seen as a big step towards a new era.
5G enabled smartphones have already made a splash in the Indian market. The reason behind this is that the country is expected to get its 5G rollout soon, which will lead to better and faster connectivity for the consumers. 5G spectrum is about to debut in the country and if you are interested in the upcoming 5G technology then here is everything you need to know about it.
Apart from the three major mobile service providers, Adani Data Network of the Adani Group is also participating in the auction process. Apart from Adani Group, Reliance Jio, Bharti Airtel, Vodafone Idea will also bid for spectrum. A total of 72 GHz airwaves will be auctioned in this auction.
The bidding for 5G spectrum will begin on July 26 at 10 am and will continue till 6 pm. According to DoT sources, the duration of the auction will depend on the cultural demand for radio waves and the strategy used by the various bidders. An aggressive bidding war is expected between all the competitors. The auction is expected to be completed by the end of July.
Each company has different EMD deposit amount, how will it impact the bidding?
The EMD amount tells which company can buy more spectrum. Also, this amount reflects the company’s strategy and ability to buy spectrum. The eligibility marks are awarded to the applicant on the basis of EMD. Based on that, it may try to buy a certain amount of airwaves in the selected spectrum band. Based on the amount of EMD, experts estimate that the Adani Group would be worth around Spectrum worth Rs 700 crore can be bought.
What will be the difference with the advent of 5G?
Users will get more technical features in 5G compared to 4G. Internet download speed in 4G is limited to 150 MB per second. In 5G it can go up to 10GB per second. User will be able to download even the heaviest files in a matter of seconds. Upload speed in 5G will also be up to 1Gbps, which is only up to 50 Mbps in 4G network. At the same time, due to the greater range of 5G network than 4G, it will be able to connect to several more devices without reducing the speed.
Which companies bid for 5G spectrum?
There are 4 major players in the race- Jio, Bharti Airtel, Vodafone Idea and Adani Group. Jio is expected to get the highest bids followed by the remaining 3 companies. Adani Group has recently made an earnest money deposit of Rs 100 crore, while Jio has made an EMD of Rs. 14,000 crores. The number of airwaves a corporation can bid for is reflected in its EMD.
All 4 players have deposited a combined Rs. 21,400 crore in EMD. While Jio has deposited EMD of Rs. 14,000 crores, Bharti Airtel has put in 5500 crores. Vodafone-Idea Rs. 2200 crores indicates that it will buy airwaves in its priority markets. Adani Group aims to acquire 5G spectrum for providing private network solutions in airports, logistics, power generation, transmission and other sectors, for which it has invested Rs. 100 crore as EMD. To recap, in the 2021 4G spectrum auction, Jio used 77.9% of its EMD while Airtel used 87.7%.
Will data plans get more expensive after 5G?
The biggest question for users is the price to be paid for 5G internet. Telecom companies have not made any statement in this regard as no spectrum auction has taken place in India so far. However, 5G service is expected to cost more than 4G due to the cost of bringing in new technology.
If the difference in the prices of 4G and 5G is seen in the countries where 5G services have been started, it is known that in the US, where the price of 4G unlimited services was up to $ 68 (about five thousand rupees). Whereas with 5G, this difference has increased to $ 89 (about Rs 6500). This difference varies under different plans. 5G plans are 10 to 30 percent more expensive than 4G.
Which 5G bands will be up for auction?
The Department of Telecom (DOT) has announced that the bidding will take place for a variety of low (600MHz, 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz), mid (3300MHz), and high (26GHz) frequency bands.
What would be the price of these 5G Bands in the auction?
The DoT has approved a total of 72GHz spectrum to be put on auction that is priced at a base price of Rs. 4.3 lakh cr. The DoT expected that the 5G auctions would generate between Rs. 70,000 and Rs. 1,00,000 crores ushering in modern products, and business models while enabling ultra-high speeds that are around 10 times faster than 4G. The mega bid is likely to be about Rs. 1.5 lakh crore.
When will 5G rollout happen in India?
5G rollout is expected in India by August-September. The rollout will happen in phases and will be limited to metros and big cities initially. This is because there are limited 5G smartphone users in India at the moment. IT Minister Ashwini Vaishnav has confirmed that the 5G rollout will begin in August-September, where 20-25 cities will initially experience next-generation internet connectivity. These cities include Delhi, Bangalore, Hyderabad, Lucknow, Pune, Chennai, Gandhinagar, Mumbai, Ahmedabad and Chandigarh.
What will be the internet speed that 5G ?
Telecom companies have been demonstrating 5G speeds in different parts of the country as part of their testing procedures. Vi has recorded the highest ever 5G download speed of 5.92Gbps which is faster than Airtel’s 3Gbps and Jio’s 1Gbps top speed. In a real life scenario, the number would drop significantly as more and more people would be using the network simultaneously.
How much will Indian users pay for 5G?
Consumers will initially have to pay a higher price for 5G speed than for 4G. The cards may cost 10-20% premium as 5G will initially only hit the urban markets.