The new 5G spectrum will be assigned for 20 years, according to the DoT
India’s Department of Telecommunications (DoT) issued demand notices to India’s three private carriers — Bharti Airtel, Vodafone Idea (Vi) and Reliance Jio — which had acquired 5G spectrum in the recent 5G auction, calling on them to make the payments by July 26, local press reported.
The report stated that local operators have been given the option to make the payments in 20 equal annual installments. Alternately, they can pay the entire sum upfront or make a partial upfront payment, the report added.
Last month, the Indian government confirmed it sold a total of 141 megahertz of spectrum across eight bands, including 800 MHz, 900 MHz, 2.1 GHz, 3.3 GHz and 26 GHz. The government raised a total of INR113.4 billion ($1.3 billion) in the process.
Local carrier Bharti Airtel was the top bidder in the auction. The carrier spent a total of INR68.6 billion to acquire 97 megahertz of spectrum, followed by Vodafone Idea which acquired frequencies for a total of INR35.1 billion and Reliance Jio Infocomm, who spent nearly INR10 billion to secure additional 5G frequencies.
The three private carriers collectively bought only 1.34%, or 141.4 megahertz, of the 10.5 GHz of 5G airwaves on offer.
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Both Airtel and Vodafone Idea mainly bought spectrum in circles where their permits are expiring this year. Meanwhile, Reliance Jio Infocomm spent a lower amount to acquire frequencies as it doesn’t have any permits expiring anytime soon.
The new 5G spectrum will be assigned for 20 years, according to the DoT.
India completed its first 5G spectrum auction in July 2022. Reliance Jio walked away with the most spectrum, having spent $11 billion. Airtel won spectrum worth $5.4 billion, while Vodafone received spectrum worth $2.4 billion. Finally, Adani purchased spectrum worth approximately $27 million, which it will use to offer private 5G network services.
Reliance Jio Infocomm has already completed the rollout of 5G technology in India. The carrier has been rapidly expanding its 5G network using Standalone (SA) architecture since October 2022. Meanwhile, Bharti Airtel previously said it expected to cover the entire country with 5G technology by March 2024.
Meanwhile, Vodafone Idea is expected to launch its 5G network this year and is currently in negotiations with vendors for 5G contracts, according to recent reports.