BIF: 5G spectrum auction quantum is inadequate and costly

Date:

Trending

- Advertisement -

NEW DELHI: The quantum of 5G spectrum on auction in the country is inadequate and pegged at a very high reserve price which is approximately 5 to 6 times higher than in other countries and needs urgent revision, a broadband industry association said.

“Quantum of 5G spectrum on auction inadequate and at a very high reserve price. Current reserve price of 5G spectrum is too high – approximately 5 to 6 times higher than other countries and needs urgent revision. The unsold mobile spectrum has cost India Rs 5.4 lakh crore in economic loss since 2010. Forty per cent of spectrum since the 2010 auctions has remained unsold”, Broadband India Forum (BIF) President T.V. Ramachandran said in a statement.

The BIF urged government to “ensure spectrum adequacy and reasonable reserve price for successful 5G auctions and is awaiting DCC’s (Digital Communcations Commission) action towards an enabling policy decision for strengthening the country’s digital India aspirations.”

- Advertisement -

“The current reserve price of 5G spectrum is too high – about 4 times higher than other countries when compared on ARPU (average revenue per user) adjusted cost per MHz and needs urgent revision”, he said.

At the last auctions held in October 2016, which was India’s largest spectrum sale, more than 1,300 MHz of radio spectrum, that is around 59 per cent, remained unsold, leading to significant unrealised potential.

- Advertisement -

Taking all the six auctions held since 2010, only about 60 per cent spectrum has been sold.

According to the statement, India had 762 million active mobile connections in 2016 served by over 3,800 MHz of spectrum allocated to licensees, which indicates that the idle spectrum lying with the government could enable connectivity for roughly 278 million additional active connections, which correspond to 21 per cent of the country’s total population.

“If 10 per cent increase in tele-density leads to an increase of 1.9 per cent in GDP (applying the results of the ICRIER economic impact study), the financial cost of this idle spectrum can then be estimated to be Rs 5.40 lakh crore, or over 160 per cent of the financial benefit of Rs 3.30 lakh crore from all spectrum auctions so far,” BIF said.

“Due to our very high reserve prices in past auctions, we have accumulated huge unsold spectrum and thereby lost to the nation and the public as much as Rs 5.40 lakh crore and consumers have lost out on quality of services,” Ramachandran said.

According to the broadband body, India requires more spectrum to support surging data traffic. India now has the highest data traffic in the world but has one of the lowest allocations.

“Many developed nations across the world have assigned spectral resources far in excess of the quantum that is available to Indian operators. India has 185 MHz of spectrum, much far behind 370 MHz in the United States, 296 MHz in France and 260 MHz in China.

“For a country with a large population, highly inadequate fixed line connectivity and rapidly growing mobile usage, th is is an enormous problem that constrains the coverage as well as quality of services,” he added.

Telecom companies have said the prices suggested by regulator Trai are unsustainable and too high.

Pointing to low base prices for 5G airwaves on a per MHz basis set by countries such as South Korea, the telcos say India’s pricing is seven times higher.

“We’ve made it clear that for 3.5 GHz spectrum, the reserve prices indicated by Trai in the ballpark of Rs 50,000-55,000 crore for 100 MHz, are prices we can’t afford and they’re exorbitant,” a senior Bharti Airtel official has said.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

The IoT Platform Market Just Consolidated: Smart Integrators Are Looking Elsewhere

Three platforms changed owners in 15 months. Your stack didn't change. Your risk profile did.

How Home-Based Healthcare is Improving Medical Accessibility Across India

The Indian health care industry has seen considerable transformation in recent times, primarily due to changes in patient demand and an increasing need for convenient and cost-effective health care. India is a country where high-quality health care facilities were available only in urban areas,...

Meta Platforms, Broadcom Partners to Co-Develop Multi-Gen Silicon AI Chips

Facebook parent Meta Platforms (NASDAQ: META) has expanded its partnership with Broadcom to co-develop...

Practo Names Srijesh Kumar as Global CPTO

India-based online doctor consulting platform, Practo has announced the appointment of Srijesh Kumar as...

Matrix Geo Solutions Wins ₹5.14 Crore Narmada Survey Project from MPSEDC

Matrix Geo Solutions Limited has received a Letter of Acceptance (LoA) from Madhya Pradesh...

Why Reliability and Security Are the New Differentiators in Enterprise Tech

For years, enterprises competed on features, scale, and speed. Today, the real differentiator is...

Trump Accuses Iran of Breaching Ceasefire, Warns Over Strait of Hormuz Transit

The US President Donald Trump has accused Iran of failing to allow adequate oil...

India’s Foreign Secretary Vikram Misri Holds Talks with FBI Chief Kash Patel

India’s Foreign Secretary Vikram Misri met FBI Chief Kash Patel in Washington on Thursday...

Sawai Capital Executes ₹300 Crore Structured Credit Transactions in Q4

A Gurugram-based wealth and investment platform, Sawai Capital, has executed structured credit transactions in excess of ₹300 crore during the fourth quarter, with deal...

Cisco Appoints Pete Shimer to Board, Daniel Schulman to Step Down

Cisco Systems (NASDAQ:CSCO) has appointed Pete A. Shimer to its board of directors, while...

Cisco Director Pete Shimer Files Initial Ownership Disclosure with SEC

Cisco Systems (NASDAQ: CSCO) board member Pete A. Shimer has filed an initial statement...

Buy vs Build in the AI Era: Why Enterprises Are Rethinking Technology Strategy

Every decade or so, a shift arrives that forces enterprises to rethink how they...

Cisco Report: Cybersecurity Remains Top Challenge as Industrial AI Adoption Expands

Cisco Systems (NASDAQ:CSCO) has released its latest State of Industrial AI Report, highlighting how...

Motilal Oswal Alternates leads $280 Mn Series E Round for KreditBee

India based digital lending platform KreditBee (KrazyBee Services PVT Ltd) has raised $280 million in a Series E funding round at a post money...

Cisco Appoints Pete Shimer as its board of directors

American multinational technology conglomerate, Cisco Inc (NASDAQ: CSCO) on Tuesday announced the appointment of Pete Shimer to its board of directors with the immediate effects. Shimer currently serves on the boards of Alaska Airlines, Korn Ferry and Synopsys, and is Executive Chair of the Cancer...

Cambodia Installs Statue Honouring Mine Detection Rat Magawa

Magawa, a landmine detecting rat who was awarded a gold medal for his service,...

GPS Renewables’ GPSR Arya Raises ₹500 Million from Axis AMC to Scale CBG Projects Across India

GPSR Arya, the asset platform of GPS Renewables, has raised ₹500 million in mezzanine...

How Modern Technology Enhances Efficiency and Performance of Residential HVAC Systems

Modern technology has revolutionized many aspects of our daily lives, and residential HVAC systems...

CredResolve Secures Pre-Series A round funding from Merak Ventures & Others

CredResolve, an India-based AI-powered debt collections infrastructure company, has raised a pre-Series A funding...

How to Avoid Distracted Driving on the Road

Driving on today's roads requires utmost attention and care. As automobiles evolve with advanced...

Closing India’s Employability Gap with Tech-First Hiring Models

India’s employability challenge is often framed as a skill gap problem. But that’s only...

VES College of Architecture’s Dr. Prof. Anand Achari on Preparing Students for Real Urban Challenges with AI and Design Thinking

Speaking with TechGraph, Principal of VES College of Architecture (VESCOA), Dr. Prof. Anand Achari,...

The Future of Crypto Investing Is on Autopilot

When most people think about cryptocurrency investing, they envision charts fluctuating rapidly, traders responding...

NVIDIA CEO Jensen Huang Reports 437,908 Shares Disposal at $181.93 Each

Jensen Huang, President and CEO of Nvidia Corporation (NASDAQ:NVDA), has reported a series of...

Buy vs Build in the AI Era: Why Enterprises Are Rethinking Technology Strategy

Every decade or so, a shift arrives that forces enterprises to rethink how they...

ASLI Appoints Rajagopal G as Chairman for 2026–28 Term

Association of Senior Living India (ASLI) has announced the appointment of Rajagopal G as...

realme Launches realme 16 5G in India with Dual 50MP Cameras, 7000mAh Battery

With a bid to strengthen its position in the mid range segment, realme has...

SatLeo Labs Raises $2.2 Mn Seed Round Led by Unicorn India Ventures

SatLeo Labs, a Gujarat-based space tech startup focused on capturing high-resolution thermal and visible...

How Graphics on Cars Can Boost Your Business

In today's competitive market, businesses are constantly looking for innovative ways to stand out...

Cisco Report: Cybersecurity Remains Top Challenge as Industrial AI Adoption Expands

Cisco Systems (NASDAQ:CSCO) has released its latest State of Industrial AI Report, highlighting how...

The Future of Crypto Investing Is on Autopilot

When most people think about cryptocurrency investing, they envision charts fluctuating rapidly, traders responding...

How NBBL’s New Technology Stack Is Transforming the Future of Payments

India’s digital payments ecosystem has reached a scale that very few countries in the...

NVIDIA CEO Jensen Huang Reports 437,908 Shares Disposal at $181.93 Each

Jensen Huang, President and CEO of Nvidia Corporation (NASDAQ:NVDA), has reported a series of...