The world's three countries South Korea, the U.S. and China have been able to roll out 5G commercially. The government is also gearing up to launch this next-generation network in India. Once this next-generation network is rolled out, not only will fast data be available, but also stability in network connectivity. However, there are still many snags in bringing this next-generation network to India. From the spectrum allocation of 5G networks to its trial and commercial roll-out.
At present, it is for the Government of India to decide whether Chinese technology and equipment manufacturer Huawei should allow 5G trials in India. Huawei was first banned by the US, and the company has since been blacklisted. Huawei has joined hands with Vodafone Idea, the country's largest telecom company, for a 5G trial in India. Now Huawei is awaiting the Indian government's decision whether the government allows it to trial.
The Government of India will auction 5G spectrum this year. For this, the Telecom Regulatory Authority of India (TRAI) has fixed the rate of selling 275 MHz spectrum in the band of 3.3 GHz to 3.6 GHz at Rs 490 crore per MHz. The band was priced at around Rs 131 crore per band in South Korea, which was auctioned in June last year. COAI (Cellular Association of India) has kept the price of 5G spectrum in India at 30 to 40 per cent higher than the global rate. Telecom companies believe that they will have to pay Rs 9,480 crore annually for spectrum of 80 to 100 MHz due to high pricing of spectrum, which will not help them.
According to the information received, TRAI has kept the 5G spectrum rate very high, with telecom companies rushing to raise funds ahead of the auction of spectrum. According to media reports, Bharti Airtel and Vodafone Idea have raised funds worth Rs 25-25 thousand crores so far. Reliance Jio, another telecom giant, is also raising funds worth Rs 3,500 crore. The 5G service in India will take at least 2 years to get the commercial rollout. Trials and tower upgrades will range from spectrum auctions during this period.
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