Telcos get six-month 5G trial extension
NEW DELHI: Telecom service providers have received a major relief as the Department of Telecommunications (DoT) has decided to give a six-month extension to conduct 5G trials till May, 2022.
This comes after Bharti Airtel, Vodafone Idea and Reliance Jio had recently written to the DoT, citing readiness worries and clarity on multiple fronts, to extend the trial period.
“DoT gave an extension for 5G trials for a period of six months as requested by the operators. This move goes well for everyone,” a telecom executive told TNIE on the condition of anonymity. In May this year, the government had allocated spectrum to the telecom companies in 700 Mhz band, 3.3-3.6 Gigahertz (Ghz) band and 24.25-28.5 Ghz band for trials across various locations for six months. The current trial period was supposed to end on November 26th.
At present, DoT is also working with the Telecom Regulatory Authority India, to seek the base price recommendations. According to the current reserve price, telcos would need to pay Rs 50,000 crore to acquire 100 MHz of 5G spectrum in the 3.3-3.6 GHz band, which is needed on average to deploy 5G tech.
This extension in trials is likely to delay the commercial 5G rollout in India as it will delay the much awaited spectrum auction process.
According to an analyst of a leading consultancy firm, the extension pushes the auction to the second half of 2022. This would mean, a commercial roll out may only take place in early 2023. “Given the current financial condition, lack of readiness and no widespread trial conducted by a major player, the government may consider giving an extension,” he said, requesting anonymity.