There is a want to expedite implementation of new telecom policy authorized by the Cabinet in 2018, and decrease the reserve cost for 5G spectrum, a senior government official mentioned on Wednesday.
Department of Telecom Member (Services) Bharat Kumar Jog mentioned forward searching policies are necessary to derive rewards from the emerging technologies.
“National Digital Communications Policy (NDCP) 2018 seeks to unlock transformative power of digital communications network to achieve the goal of digital empowerment and well being of the people of India. There is a need to expedite implementation of NDCP 2018. The government is working with all stakeholders for the same,” Jog mentioned at the India Mobile Congress (IMC) 2020.
The NDCP 2018 has most of the targets set to be accomplished by 2022. However, many techniques that have been envisaged beneath the policy authorized practically two years back are but to be implemented such as rationalisation of taxes, levies and spectrum cost.
“The policy initiatives required from the government for 5G must include and ensure spectrum availability at affordable prices, lower reserve price, uniform RoW (right of way) policy for fiberisation etc,” Jog mentioned.
Telecom operators have been demanding the government to make accessible spectrum for 5G at the earliest and decrease the reserve cost.
Mobile service providers can get started 5G services in India as soon as appropriate airwave frequencies are allotted to them by the government.
Spectrum auctions in India have been held every single year amongst 2012 to 2016. No auctions have been held in the final 4 years.
The government began the method of spectrum auction but has not clarified the timeline for the sale to commence.
The Digital Communications Commission, the apex choice creating physique at DoT, had authorized spectrum base cost encouraged by the Telecom Regulatory Authority of India (Trai) in May.
Mukesh Ambani-led firm Reliance Jio had in September also written to Telecom Secretary Anshu Prakash questioning the Department of Telecom’s (DoT) rationale to pause the policy of annual spectrum auctions and mentioned the sale of airwaves really should be held at the earliest to meet the demand for information services.
Trai had encouraged a strategy to auction spectrum worth Rs 5.22 lakh crore. However, some of the spectrum frequencies identified by DoT for auction are becoming made use of by the defence ministry and the Department of Space.
According to Jio, spectrum worth Rs 3.92 lakh crore is lying unused with DoT for auction.
Telecom operator Bharti Airtel has mentioned it will not invest in 5G spectrum in the upcoming auction if its base cost is fixed at Rs 492 crore per megahertz as encouraged by regulator Trai.
The firm has been reeling beneath a debt of Rs 1.14 lakh crore with liability to clear statutory dues of about Rs 35,500 crore, following a Supreme Court order in October 2019 that upheld the government’s stand on calculating levies more than telecom licences.
Trai has encouraged base cost of proposed 5G spectrum in 3,300-3,600 Mhz band at about Rs 492 crore per Mhz unpaired spectrum on all India basis.
Telecom operators interested in shopping for radiowaves for 5G will have to shell out a minimum of Rs 9,840 crore on all-India basis to invest in spectrum in 3,300-3,600 Mhz band as Trai has recommended that it “should be place to auction in the block size of 20 MHz.
This comes to about Rs 50,000 crore for one hundred megahertz of 5G spectrum needed to provide higher speed broadband services.