The Union Cabinet, chaired by Prime Minister Narendra Modi, has recently made two key decisions to boost connectivity across India. The Cabinet has approved a telecom spectrum auction across multiple bands at a reserve price of Rs 96,317 crore. Also, approval has also been granted for allocating 5MHz of wireless spectrum in the 700 MHz band largely free of cost to Indian Railways to improve public safety and connectivity.
Telecom Spectrum Auction Approved by Union Cabinet
The Union Cabinet has approved the 2022 spectrum auction across multiple bands including 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz. The auction will put on offer 2,251.25 Megahertz (MHz) of radiowaves worth Rs 5.07 lakh crore. However, the base price has been set at Rs 96,317 crore only, which is less than one-fifth of the total value.
Frequency Bands Up for Auction
The key frequency bands that have been put up for auction include:
- 600 MHz: The premium 600 MHz band will be put on auction for the first time. A total of 175 MHz worth Rs 29,988 crore is on offer across 22 circles or zones. This band is touted to give operators enhanced 4G coverage across India.
- 700 MHz: A total of 35 MHz worth Rs 17,297 crore across 22 circles has been put on the block in the 700 MHz band 3.5 Ghz band. This has a pan India 5G potential.
- 800 MHz: A total of 60 MHz worth Rs 16,306 crore has been made available across 22 circles in the 800 MHz band which is primarily held by Reliance Jio.
- 900 MHz: A total of 15 MHz worth Rs 7,261 crore pan India has been put up for auction in the efficient 900 MHz band providing enhanced Indoor 4G coverage.
- 1800 MHz: A total of 200 MHz worth Rs 14,739 crore across 22 zones has been put on offer in the 1800 MHz band currently used extensively for offering 4G services.
- 2100 MHz: A total of 275 MHz worth Rs 11,276 crore across all 22 circles has been made available in 2100 MHz band.
- 2300 MHz: A total of Roth 500 MHz worth 61 crore pan India has been put on offer in 2300 MHz band which can be used for early 5G rollouts by telecom operators.
- 2500 MHz: A total of 945 MHz worth Rs 50,239 crore is on offer across 22 circles in 2500 MHz band which is the primary band for current 5G rollouts globally.
In totality, over 2251 MHz of spectrum worth Rs 5.07 lakh crore at reserve price has been approved for 5G auctions soon. This includes spectrum across all key bands suitable for providing high-speed data services across 2G, 3G, 4G and 5G technology platforms.
Key Objectives of the Auction
The upcoming spectrum auction spanning across seven key frequency bands is aimed at achieving the following objectives:
- Facilitate Rollout of 5G Mobile Services: The key focus of the upcoming auction is on bands like 600 MHz, 700 MHz, 800 MHz, 900 MHz, 2100 MHz, 2300 MHz and 2500 MHz that have the capability to support 5G. This will facilitate fast deployment of the next-gen 5G services across India.
- Enhance Connectivity and Boost Data Speed: Additional spectrum supply across different bands will help meet the burgeoning demand for high-speed data services in urban areas as well as enhance connectivity in remote areas.
- Optimize Spectrum Utilization: The auction will facilitate assignment of radio waves currently unutilized with any telecom operator to be locked in by the winning bidder during the upcoming bidding process.
- Generate Revenue for Government: The auction will help the Government earn precious revenue from what could be called spectrum sales close to Rs 1 lakh crore going by past auctions. The reserve price itself has been fixed at Rs 96,317 crore.
- Prepare for Future Technologies like IoT, AI & Machine Learning: The new spectrum supply across different bands will help telecom operators gear up for latest technologies like IoT and Machine Learning which are expected to drive the connected digital world.
Auction Timelines
As per the Notice Inviting Application issued for participating in the spectrum auction, the key timelines are as follows:
- February 20: Last date for submitting applications to participate in the auction. Interested bidders will have to submit details by this date to be eligible.
- February 21-25: List of qualified bidders will be announced after scrutiny of the applications.
- March 1-2: Mock auction conducted to test systems and software.
- March 7: Electronic auction floor opens for actual bidding for spectrum across all the frequency bands approved. Bidding will then continue on a day-today basis.
- March 8 onwards: Successful bidders would make upfront payments for the airwaves won within 10 days of close of auctions.
The bidding process is expected to start from March 7 onwards until the close of the auction. The left-over spectrum, if any, could be subsequently offered at the same reserve price in a year or so.
Eligibility for Participation
All telecom companies and internet service providers holding a Unified License, Unified Access License, or National Long Distance License can participate in the auction process after due qualification. Applications received will be scrutinized by a multi-disciplinary committee to check compliance with existing guidelines.
Wireless Spectrum Allocated to Indian Railways
In addition to the approval for the 2022 spectrum auction, the Union Cabinet also gave its nod for assignment of 5 MHz spectrum in 700 MHz frequency band to Indian Railways primarily to enhance public safety and security services.
Key Highlights
- Indian Railways has been allocated spectrum in 700 MHz band (7551-7564 MHz paired with 7691-7704 MHz) largely free of cost on a no-charge basis. This means no auction bidding or spectrum usage charges.
- 5MHz spectrum has been allocated for a period of 10 years which can be further extended.
- The spectrum will be used for public safety and security services at stations, in trains and along the tracks.
- It will enable high-speed data and IoT applications to support communication needs of passengers during normal and emergency situations.
- The estimated investment in the project will be over Rs 25,000 crore.
Services Planned by Indian Railways
The 5MHz spectrum allocated to the Indian Railways will be used to provide the following public safety and security services:
Key Applications Planned by Indian Railways using 700 MHz Spectrum
| Application | Description |
| Video Surveillance | High Definition CCTV cameras inside trains and stations to monitor crowds |
| Video analytics | Advanced features like facial recognition, detection of intrusions on tracks etc |
| Drone-based surveillance | Drones equipped with HD cameras for security monitoring across railway premises |
| Railway security communications | Secure, interference-free communication network for security personnel |
| Passenger information system | Public announcements, signage and information display across platforms and trains |
| Onboard infotainment | High-speed WiFi and entertainment system inside trains |
| IoT use cases | Real-time asset tracking (rolling stock), remote monitoring of locomotives etc |
| Modern railway safety systems | Spectrum can supplement systems like Train Collision Avoidance System and improve safety |
The upcoming use cases span across security, passenger convenience and modernization of Railways infrastructure. The 5 MHz spectrum in 700 MHz band will prove to be a real game-changer for Indian Railways.