5G Spectrum First Auction Base Cost is ₹9,840 Crores, Claims COAI.

India is approaching the first 5G spectrum trial, during which the first 5G spectrum panel auction will take place.

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The government-proposed base price of the next generation technology’s spectrum is prohibitively high, and may create a difficult situation for the government and the telecom operators alike.

Rajan Mathews, Director General of the Cellular Operators Association of India (COAI)

A Reuters report claims that perhaps the regulatory authority of India’s Telecom Regulatory Authority (TRAI) has offered a starting price of Rs 492 crore for each 5 G spectrum unit, authorized to be used in 22 areas of India. Telecom providers are allowed to apply in blocks for the spectrum, each consisting of 20 units. As a consequence, each block would cost a minimum Rs 9,840 crore to a service provider.

This value is considered too costly to be afforded by carriers. Given India’s increasingly competitive sector and low data packs cost, many operators would strive to keep the rates for 5G data plans as minimal as possible. Most providers are still inclined to buyout for 5G spectrum, as supporting 5G connectivity is essential for leading telcos.

Airtel and Vodafone-Idea stressed that it is essential for pricing to be decisive to maximize 5 G communication, a press release from the Economic Times indicated that Reliance Jio is doubtful to resist 5 G spectrum base pricing at the auction.

The very first 5G spectrum auction in India is scheduled to be held afterward this year, as well as a government implementation of the new connectivity standard is anticipated by 2020, when we might do see the first gen of 5G-enabled smartphones as well as other applications come to market. It would be exciting to see which provider receives the mark to be the first 5G network adopter in India.

Via 91mobiles

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