Fixing Frequency First: On 5G Economic Payouts In Budget Speech

Finance Minister Nirmala Sitharaman’s budget announcement that the government proposes to conduct an “essential spectrum auction” in 2022 to facilitate the roll-out of 5G mobile phone services in 2022-23, clears up speculation about the feasibility of the timing. triggered by. The government’s eagerness to accelerate the roll-out was fueled by Ms Sitharaman’s appreciation of the ability of the latest generation of telecom technology to serve as an enabler of economic growth and job creation. Commenting on the budget announcement, Communications Minister Ashwini Vaishnav said that TRAI is expected to submit its recommendations on spectrum to be set aside for 5G by March, adding that the auction for airwaves will be held soon. While last week’s announcements raised the possibility that the next auction of telecom spectrum could take place within the next few months, there is little clarity on the government’s approach with regard to the critical issues surrounding the introduction of 5G services. what is the plan. , The most important questions are about the specific frequencies that can be recommended by the regulator, the government’s plans on pricing of spectrum, and most importantly, the viability of the new technology for both telecom companies and the economy as a whole. With the financially stressed private telecom service provider industry now almost a monopoly, as Vodafone Idea continues to incur losses and customer bleeds and even the DoT plans to convert some of its outstanding interest into equity stake Which will make the central government. The largest shareholder, the sector’s appetite for highly capital intensive 5G technology is unlikely to be substantial at this time.

That represents an exponential leap forward in 5G technology, no doubt about it. However, most countries that have commercialized 5G by now largely still deploy the technology as an advanced replacement for 4G primarily in the end use case, envisaging industrial and public utility applications. Still at least a few years away. In addition, for the new technology to operate at its maximum potential, the government would not only need to offer key operating frequencies below 1 GHz, C-band frequencies of around 3.5 GHz and higher 26 GHz, but also significantly Transportation will also need to be enabled. Or the backhaul of signal between base stations and the telecom operator’s core network by offering low-cost E-band airwaves. The COVID-19 pandemic has shown inadequacies in terms of accessibility of existing mobile networks, especially in enabling the delivery of education to remote and rural students, unless policy makers ensure that 5G is needed. Delaying the start may make the most sense. The economic payoff will outweigh the high cost.