5G Spectrum Auctions in India officially began on 26 July wherein 4 big players got down in the ring to buy what they needed. The first 2 days of the auctions saw the bids cross Rs. 1.49 trillion and the entire process is expected to be completed by August mid so that the services roll out by September.
Jio has spent upwards of Rs. 80,000 crores and is likely to have bought a pricey 700MHz band in India. Along with 700MHz, the company is also buying mid-band and high-band. As more and more rounds of the auctions will get over, Jio is expected to have a significant advantage with regards to calling quality and overall network quality.
5 rounds of auctions were completed on Wednesday and Telcom Minister Ashwini Vaishnav claimed that good competition is being seen among all the brands. He expressed his happiness at the good response received for the 700MHz band. “The sector is coming with new energy and that is reflected in response to 5G auctions,” Vaishnav said.
What is the 700MHz band & why is it being considered premium?
In India, the 5G spectrum that is being auctioned includes 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 2500MHz, 3300MHz, and 26GHz bands. A total of 72097.85MHz spectrum is being put to auction and as per government sources, the bidding was focused mainly on the 3300MHz, 26GHz, and 700MHz bands.
700MHz is among the lowest frequency 5G bands, while 4G frequencies are between 700 and 2500MHz. High-frequency bands deliver higher speeds but are limited to smaller coverage areas. Low-frequency bands offer slower speeds but a wider coverage area-ideal for a country like ours.
This band will help telecom operators cut costs and give better network coverage and is thus being considered a premium band. Due to its low frequency, it will be able to penetrate the buildings efficiently and offer good connectivity in congested regions. The band is being sold at a higher price than other bands because of its usability and demand.
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Government sources claim that around 40% of the 700MHz band has already been sold. PTI claims that provisional bids worth Rs. 39,270 crores were received on day one of the auctions for the 700MHz band. As India is dense in terms of population and congested as well, 700MHz is expected to improve the quality of 5G services in the country. Especially in urban areas, where 5G will roll out first. For telecom companies as well, offering broadband services in the 700Mhz band is cheaper than offering them in the 2100MHz band.
Jio bids the majority of the 700MHz band
On day 1 of the auction itself, Jio spent over Rs. 80,000 crores and grabbed the 700MHz band. ICICI Securities said, “our analysis shows that Jio has likely bid for the highest spectrum worth Rs. 80,100 crores and likely opted for 10MHz in the 700MHz band. Adani bought 26GHz in 20 circles and its total spectrum cost could be Rs. 900 crores.
