NEW DELHI: The Union government is set to go ahead with the long-awaited spectrum auction within the next few months, but no 5G capable airwaves are likely to go under the hammer. According to sources, the auctioneer who will conduct the bidding will be finalised by May 22.
The Department of Telecom (DoT) has already arrived at a list of auctioneers technically qualified to conduct the auction, including two firms that have experience with spectrum auctions. These auctioneers who passed the technical qualification round will now be expected to make financial bids beginning May 18. "By May 22, the auctioneer who will conduct the bidding will be finalised by the DoT," said an official.
However, while 4G-capable airwaves will go under the hammer soon, the long-awaited auction for 5G bands is likely to be dropped this time around. According to sources, with several licenses in the non-5G field coming up for renewal soon, these airwaves will need to be auctioned again.
This is likely to result in 8000 Mhz of spectrum being put on the block, including the 700Mhz, 800Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands. While the earlier plan, which included the 5G-capable 3,300-3,600 Mhz band, would have seen around Rs 5.22 lakh crore worth of spectrum to bid for, the exclusion of 5G bands will bring this number down to around Rs 3 lakh crore.
According to the plan decided by the Digital Communications Commission (DCC), successful bidders are required to make an upfront payment of 25 per cent for sub-1 GHz, and 50 per cent for higher frequencies. However, if the bands are not available immediately, successful bidders will only have to pay an upfront payment of 10 per cent for the sub-1 GHz band, and 20 per cent for bands above 1 GHz.
The telecom industry has repeated several times that the base price recommended for the 5G airwaves were too expensive at Rs 492 crore per megahertz spectrum. A finance ministry task force had also said that these 5G base prices were expensive, especially considering the stress in the segment.