Good news for Jio, Airtel users regarding 5G, Vodafone Idea customers will be disappointed!

5G network can be started in India this year, for which all the telecom companies are preparing. Meanwhile, a report by BofA Securities released on Monday said that Reliance Jio and Bharti Airtel are in a position to buy 5G spectrum across the country, but Vodafone-Idea’s bid has to be rejected. There remains uncertainty about it. It has been said in the report that it will be difficult for any telecom company not to bid for 5G spectrum in a large circle, to provide 5G service on the existing 4G band. This is because the existing networks are already running at full capacity. Because of this, the vacant spectrum remains limited.

It has been said in the report that due to the high reserve price, any new telecom operator will avoid bidding in the auction of 5G spectrum. Only big companies like Reliance and Airtel are in a position to buy 5G spectrum across the country. However, it is not clear how Vodafone-Idea will fund 5G.

Research analysts at BofA believe that Vodafone-Idea’s (VIL) management has focused on top circles. It can selectively bid in its major 3G and 4G circles. The report said that after 5G, VIL will be more vulnerable as it will not have 5G spectrum at the pan India level. Nothing has been said by Voda-Idea in this matter at the moment.

The report speculates that operators may be interested in 3.5 GHz in the auction, as it is the primary band for 5G. At the same time, considering the high price of 700 MHz, it can get limited response. The spectrum auction is expected to take place in late June or early July. 5G services are expected to arrive in the country by August-September. The proposal for 5G spectrum auction is likely to be taken to the Union Cabinet this week for final approval.

BofA Securities expects Jio to be the most aggressive in the deployment of standalone 5G and force the rest of the players to step up their investments. The report says that the government may also consider allotment and auction of E and V bands. This will benefit Tier 2 and 3 cities. At the same time, the Telecom Regulatory Authority of India (TRAI) has recommended mega auction plans of more than Rs 7.5 lakh crore.

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