it’s official. Billionaire Gautam Adani-led conglomerate has confirmed its surprise entry in the race to acquire telecom spectrum. this will that will set it straight against Mukesh Ambani‘s Reliance Jio and telecommunication jar Sunil Bharti Mittal‘s Airtel, These will be groups that have not come face-to-face until recently. While the former expanded from the oil and petrochemical business into telecommunications and retail, the latter expanded from the port segment to coal, power distribution and aviation. and now, if Adani Group Participates in the 5G auction on July 26, this will be the first direct competition with Ambani.
What did you do Adani group says
“As India prepares to launch next generation 5G services through this auction, we are one of the many applications participating in the open bidding process,” the group said in a statement. Network solutions with enhanced cyber security in airports, ports and logistics, power generation, transmission, distribution and various manufacturing operations,” the statement added.
When is the 5G auction taking place?
The auction of fifth generation or 5G telecom services is set to begin from July 26, the DoT has notified in its notice inviting applications (NIA). The cabinet last month approved 5G auction at the reserve price recommended by the sector regulator Telecom Regulatory Authority India (Trai). The regulator had recommended a cut of around 39% in the minimum price for sale of 5G spectrum for mobile services.
Which are all the telecom service providers in the race for 5G spectrum?
Reliance Jio, Airtel and Vodafone Idea and Adani Group have applied. Adani Group recently acquired 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 crore will be put on the block during the auction. The auction will be conducted for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.
When is 5G services expected to start
5G services in India are likely to start in the last quarter of the year.
What is the validity of spectrum
The right to use spectrum will have a validity of 20 years. The bidders will be given an option to surrender the spectrum after 10 years without any future liabilities in respect of the remaining installments. No SUC (Spectrum Usage Charge) will be levied for the spectrum received in this auction.
What are the 5G payment terms for telecom companies
Overall, the payment terms have been relaxed for the bidders in the upcoming auction. For the first time, there is no mandatory requirement to make advance payment by the successful bidders. Payment for spectrum can be paid in advance in 20 equal annual installments at the beginning of each year, a discount that is expected to significantly reduce cash flow requirements and the cost of doing business in the sector.
While 5G spectrum in nine frequency bands will be auctioned to telecom operators, notice inviting applications – Bid – Related Documents Telecom Deptt – Said that tech firms will be allowed to take 5G spectrum on lease from telecom companies for their private non-public networks. The bid document said that the direct allotment of spectrum to tech companies would follow the recommendations of sector regulator TRAI on aspects such as demand studies and the modalities of such allocation.
(with agency input)
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