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  • DAILY CURRENT AFFAIRS:Government to expects telecom companies to roll out 5G services by October

Government to expects telecom companies to roll out 5G services by October

Tags: National Economics/Business

Union Communication minister Ashwini Vaishnaw expects the roll out of the 5G telecom service in the country by October 2022 as the government received a record bidding amount for the 5G spectrum auction which ended on 1 August 2022. 

5G spectrum allocation 

  • India has been divided into 22 telecom circles by the Department of Telecommunications (DoT) and the companies were asked to bid for the offered spectrum. 
  • The bidding for the 5G spectrum was held by the government from 26 July to 1 August 2022.
  • Government offered 72 GHz of radio waves for auction for a period of 20 years and four telecom companies participated in the auction. 
  • The participating companies were Reliance Jio, Bharti Airtel, Vodafone-Idea and Gautam Adani’s, Adani Data Network.

Spectrum on offers 

 DoT  offered 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz), and high (26 GHz) frequency bands for auctions..

Total bidding amount 

According to the telecom minister 71 % of the total spectrum on offer was sold and the bidding amount was Rs 1, 50,173 crore.

This is the highest ever received as a bidding amount by the government for a spectrum auction. 

The previous highest was the 4G auction in 2021 for Rs 77,815 crore. 

Reliance Jio was the highest bidder 

  • Reliance Jio emerged as the highest bidder with Rs 88,078 crore bid for 24,740 MHz of airwaves. 
  •  Sunil Bharti Mittal's Bharti Airtel made a successful bid of Rs 43,084 crore for19,867.8 MHz of spectrum
  • Vodafone Idea Ltd bought 6228 MHz of spectrum for Rs 18,799 crore.
  • Gautam Adani company paid Rs 212 crore for 400 MHz

 Impact of the Auction 

On Government revenue 

  • The record bid amount received by the government is expected to boost the central government finances. 
  • It will help the government bridge its fiscal deficit which is expected to be 6.4 % of the GDP. 
  • The Department of Telecom is expected to receive $1.6 billion as license fee from the telecom operator who will operate the network for the next 20 years.

Benefit to the Public 

The introduction of 5G in India is likely to usher in a new era of high-speed internet, allowing video downloads in seconds and enabling the use of advanced connected devices through cloud computing technologies.

 It is likely to give a boost to the economy and enable higher data consumption.

What is 5G 

  • It refers to the 5th generation of mobile technology .
  • It's the next generation of mobile internet connection and offers much faster data download and upload speeds.
  • Through greater use of the radio spectrum it will allow far more devices to access the mobile internet at the same time.
  •  Existing spectrum bands are becoming congested, leading to breakdowns in service, particularly when lots of people in the same area are trying to access online mobile services at the same time.
  • 5G is much better at handling thousands of devices simultaneously, from mobiles to equipment sensors, video cameras to smart street lights.

What is spectrum and how does it work?

  • Airwaves are radio frequencies within the electromagnetic spectrum that can carry information wirelessly for a range of services including telecommunications.
  • In India spectrum is owned by the government of India.
  •  The government manages and allocates airwaves to companies or sectors for their use.

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