5G spectrum will be auctioned next month.
It is believed that the auction of 5G spectrum will take place in the last week of July. According to reports, the government can collect 80 thousand to 1 lakh crore rupees through this auction.
next month 5G spectrum auction ,5G spectrum auction) is about to happen. It is believed that through this the government will collect a fund of Rs 1 lakh crore. The 72 GHz spectrum will be included in this auction process, which will have a validity of 20 years. However, IIFL Securities believes that most of the spectrum will not be sold. According to him, Airtel, Jio and Vodafone Idea together will buy spectrum worth Rs 71 thousand crores. It is believed that the auction of spectrum on 26th of next month (5G auction) will be started. Talking about technology, the speed of 5G spectrum will be 10 times that of 4G.
In this auction process, 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz will be auctioned under low spectrum. 3300 megahertz will be auctioned in the medium level. At the same time, 26000 MHz frequency band will be auctioned in the high frequency band. According to the report of CNBC, the demand in the mid range is good.
5G market will grow very fast
Giving relief to the telecom companies, the government has recently decided to zero spectrum usage charge (SUC). Now telecom companies will not have to make upfront payment. According to a report by telecom hardware company Ericsson, in the next five years till 2027, 40% of the country’s subscribers will use 5G network. Apart from this, 56 percent of the mobile traffic will be carried by the 5G network.
Big relief to telecom companies by removing SUC
Before the spectrum auction, the government has removed the spectrum usage charge. This will reduce their cost. Due to the removal of floor rate of 3 per cent, telecom companies will save Rs 5400 crore on an annual basis. Bharti Airtel alone will save 2100 crores annually. Jio will save 2300 crores and Vodafone 1000 crores.
Which company can spend how much?
According to a report by IIFL Securities, telcos feel that the base price fixed for 5G spectrum is still too high, while the government has cut it by about 40 per cent. It is believed that Reliance Jio will spend Rs 37500 crore in the next month’s auction. Airtel will spend 25 thousand crores and Vodafone Idea will spend 850 crores. Altogether this amount is Rs 71 thousand crores.