The 5G spectrum auction that will take place today in India will be the country’s most extensive auction ever.
The beginning of the United States largest-ever spectrum auction will take place on Tuesday, and with it, the country will be able to take significant steps toward the 5G future. In the auction for a total of 72 GHz airwaves, there will be participation from four firms. These companies are Reliance Jio, Bharti Airtel, Vodafone Idea, and Adani Data Networks, an Adani Group division. They have made what is known as earnest money deposits (EMDs) to the Department of Telecommunications, which is a strong hint that they plan to bid on the contract (DoT).
In comparison, Bharti Airtel’s investment was $5.500 billion, Vodafone Idea’s investment was $2.200 billion, and the Adani Group’s investment was $100 billion. Reliance Jio’s investment was $14 trillion.
The auction will begin on July 26 and will feature a total of 72,097.85 MHz (72 GHz) spectrum with a validity duration of 20 years. There will be a spectrum sale in the frequency ranges of 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1 800 MHz, 2 100 MHz, 2 300 MHz, 3 300 MHz, and 26 GHz.
5G Spectrum Setup in India
According to a statement that was released by the Union Cabinet the previous month, “it is anticipated that telecom service providers will use the Mid and High band spectrum to roll out 5G technology-based services capable of providing speed and capacities which would be about ten times higher than what is possible through the existing 4G services.”
The amount of EMD is a kind of communication that indicates a company’s bidding strategy and purchasing power and conveys the company’s goal regarding the amount of spectrum it wishes to acquire.
An application’s EMD is used to assign eligibility points; these points govern the total amount of airwaves the application is permitted to target within a given frequency band. According to the EMD, analysts believe that the Adani Group would be interested in purchasing spectrum for a total price of Rs 700 crore.
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The Adani Group, which has stated that it intends to participate in the auction to create private 5G networks, is seen by analysts as a potential competitor to telecom companies in the market for corporate solutions. Experts think that the Adani conglomerate might not directly compete with the other three telecommunications in the consumer 5G space, at least not right now. This is because of the significant gap between their EMDs and those of the other three telcos, most notably Jio.
The Adani Group has already said that it will only compete in the auctions to construct private networks for commercial sectors such as ports, airports, and power plants. These are the only auctions in which they intend to take part. According to reports from Credit Suisse, Morgan Stanley, Nomura, and other firms, the Adani Group may not be in direct competition with telcos in the consumer 5G market. However, the conglomerate has not formally confirmed that it would only build these private networks in its business verticals.
According to regulations on the development of 5G networks published by the Department of Transportation a month ago, entities are permitted to lease spectrum from telecommunications companies to establish their private networks. This is following the regulations on the creation of 5G networks. Experts believe this is one area in which the Adani Group may be able to directly compete against the other three telecom organisations since it may potentially lease spectrum to other companies. This may indicate that the Adani Group is aiming for a larger share of the overall income pie, which is especially significant considering the widespread view that enterprise solutions would be the critical source of revenue for telecom corporations under the 5G standard.