5G spectrum auction: Who won what?

The auction of 5G spectrum for providing 5G services in twenty two LSAs (Licensed Service Areas) started on July 26, 2022, and was concluded on August 1, 2022. The spectrum auction methodology used in India is SMRA (Simultaneous Multiple Rounds Ascending) e-auction. MSTC (Metal Scrap Trade Corporation) conducted the auction.

Spectrum put for auction

• Low band (600, 700, 800, 900,1800, 2100 and 2500 MHz bands)

• Mid band (3300 MHz band)

• High band (26 GHz): This band is also called millimeter (mm) wave band.

Total 72,098 MHz of spectrum was offered in the auction. The total reserve price of the spectrum offered for auction was Rs 4.3 lakh crores.

The low band spectrum provides wide coverage and is suitable for rural areas and for 'in building solutions' in urban areas. In this band speed and capacity are less and latency is high compared to the high band. The high band spectrum provides high speed and capacity and has low latency but range is less and so requires more towers. The features of mid band will be between the low and high bands.

Results of the auction

All the incumbent private Telecom Service Providers (TSPs) i.e. JIO, AIrtel and Vodafone participated in the 5G spectrum auction. The new player, Adani Data Networks also participated. 71 per cent of the spectrum offered in the auction was sold fetching Rs 1.5 lakh crores to the national exchequer (about ⅓ rd of reserve price). This amount is double in comparison to the 4G auction that took place last year. Apart from one LSA in the 1800 MHz band, spectrum was sold at the reserve price only. Jio purchased 48 per cent of the spectrum sold by offering Rs 88,000 crores. Airtel acquired 39 per cent of spectrum sold for Rs 44,000 crores. Vodafone got 12 per cent of spectrum sold by spending Rs 19,000 crores. Adani Data networks paid Rs 212 crores for acquiring a bandwidth of 400 MHz in high band (100 MHz each in Gujarat and Mumbai LSAs and 50 MHz each in AP, Karnataka, Rajasthan and Tamil Nadu LSAs). The band wise analysis is as follows:

• Low band: There was no bidder for 600 MHz band. The reason is the device echo system for this band is not yet developed for mobile telephony. 40 per cent of 700 MHz spectrum was sold. JIO spent Rs 39,270 crores for purchasing 700 MHz spectrum.

• Mid band and High band: 76 per cent and 72 per cent of the spectrum put for auction was sold respectively.

Mid and high bands received maximum response at the auction. Jio and Airtel together got 87 per cent of the spectrum sold in these bands.

Adani Data Networks has applied for a Unified Access Services Licence (UASL) in six LSAs. It will not enter the consumer mobility arena and will provide Captive Wireless Private Network (CWPN) solutions along with enhanced cyber security in its airport, ports, power generation plants, manufacturing plants. In addition as they build their own digital platforms they will need 5G networks across their businesses. BSNL/MTNL has been assigned 5G spectrum in the administrative route (without the need for participating in the auction)

Spectrum Harmonisation

Spectrum harmonisation means consolidating the airwaves in a particular band to create continuous blocks, with the consensus of the TSPs, for providing faster data speeds. This exercise was done by DOT before allotting the 5G spectrum to the TSPs. This process happens after every spectrum action. This time just in one single day this process was completed.

Allotment of E band spectrum along with 5G spectrum

DOT is provisionally allotting E band (71-76 GHz and 81-86 GHz) waves to 5G TSPs, via the administrative route, in the LSAs where 5G spectrum is allotted to them for providing backhaul. TSPs have to pay provisional spectrum usage charges for this band. They have to pay the difference amount retrospectively when the final spectrum usage charges for these air waves are finalised by the government. Where the TSPs can't fiberise the towers, there they can deploy E band radio links for providing the backhaul.

Equipment procurement for 5G services by the private TSPs

On 19.05.22 the Minister of Communications made the first 5G audio and video call for which the end to end network was designed and developed in India. The Minister said that the entire Indian 5G stack would be ready to be deployed around September-October. All communications on a 5G network are encrypted with the keys stored in the core implying that they can't be read by the base station. This makes the core equipment critical from data security point of view and so adopting an Indian core for 5G network is preferable. Government has allowed the private TSPs to procure the 5G equipment from Trusted Sources. JIO and Airtel are likely to purchase equipment for rolling out 5G services from Nokia (Finland), Ericsson (Sweden) and Samsung (Korea). Vodafone may purchase 5G equipment from Nokia/Ericsson.

All the TSPs will offer 5G service in the NSA (Non Stand Alone) mode (with common core for 4G and 5G services) initially and upgrade the 5G equipment to SA mode (separate cores for 4G and 5G) later. The unique features of 5G like Network Slicing, low latency etc., can be realised only if 5G is implemented with SA architecture.

5G Spectrum for BSNL/MTNL

BSNL is handling the mobile services in MTNL areas also. BSNL has been assigned 5G spectrum of 10 MHz in 600 MHz band, 40 MHz in 3.5 GHz band and 400 MHz in the 26 GHz band. It has asked for more spectrum from DOT. After 4G services are launched by BSNL, its 4G equipment will be upgraded to 5G NSA in 2023 by CDOT and later it will be further upgraded to SA mode. BSNL can lease out part of its 5G spectrum for setting up CWPN. It has initiated the process of selling 10,000 towers (70 per cent of them are fiberised) to Telecom Tower companies who will lease out these towers to private TSPs for providing 5G services. BSNL aloso can lease the towers from these tower companies for their 4G/5G services.

Exercise for more 5G spectrum by DOT

DOT has commenced the exercise for utilising 37-42.5 GHz band for 5G and Satellite Communications. 5G players can use this band for offering Fixed Wireless Access (FWA) services.

Way forward

Spectrum is a limited, scarce and precious natural resource. The 600 MHz band is not claimed by any operator in the recently concluded auction. This band is ideal for rural connectivity. As per the just concluded 5G spectrum auction, 5G may not mean much for rural India as the TSPs acquired only mid band and high band spectrums. Government should ensure that 600 MHz is utilised by reducing the reserve price for it in the next auction. It is hoped that the handset echo system in this frequency band will be ready by that time. Government may launch 5G at the inauguration of Indian Mobile Congress (IMC) on September 29, 2022. On that day India will become the proud member of the elite club of seventy countries offering 5G services. 5G telecom services are expected to be available in thirteen cities in our country in the first phase by the end of 2022. Mobile industry is expected to play a vital role in our country's vision to be a $5 trillion economy by 2025.

(The author is a former Advisor, Department of Telecommunications (DoT), Government of India)