Lagatar24 Desk
New Delhi, June 15: The Union cabinet, led by Prime Minister Narendra Modi, has approved the 5G spectrum auction, which will take place by the end of July. A total of 72 GHz (gigahertz) of spectrum will be auctioned, with a 20-year validity period. India is planning to roll out 5G services shortly, according to the government, which will be 10 times faster than 4G.
“Digital connectivity has been an important part of policy initiatives of the government through its flagship programs such as Digital India, Start-up India, Make in India and others,” an official statement read.
“It is expected that the Mid and High band spectrum will be utilised by Telecom Service Providers to roll-out of 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,” it further added.
The huge shift is expected to boost new age firms, as well as generate additional cash for corporations.
The auction is likely to profit from the Telecom Sector Reforms, which were announced in September of last year. The obligation to present a financial bank guarantee in the amount of one annual instalment has also been removed.
The union cabinet has also decided to allow for the development and establishment of Private Captive Networks, according to the government, in order to spur a new wave of innovations in Industry 4.0 applications such as machine-to-machine communications, Internet of Things (IoT), and Artificial Intelligence (AI) in the automotive, healthcare, agriculture, energy, and other sectors.
According to the reports, the bidders will be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance installments.
