Digital Communications Commission, DoT’s highest decision-making body, has recently discussed auctions. While Reliance Jio hasn’t publicly backed a move to delay 5G auctions, all three operators have said the base price, Rs 492 crore a unit, was too high and wouldn’t attract bids.

May 13, 2020

As reported in a leading daily, the government plans to split the next telecom spectrum auctions by offering 4G airwaves sometime this year and 5G probably in 2021, people familiar with the matter said. The move would benefit Vodafone Idea and Bharti Airtel, which want the 5G spectrum sale to be delayed, citing stretched finances and an underdeveloped ecosystem, analysts said.

Officials from the Department of Telecommunication pointed out that a 5G spectrum auction this year would have attracted few bidders, indicating the reason for the U-turn. However, industry executives said lack of clarity on whether Chinese vendors Huawei and ZTE can deploy their next generation mobile communication standard technology in India prompted the government to postpone the spectrum auction.

“Discussions are on to hold the 5G auctions later as some of the telcos need to buy spectrum but 5G may not be the priority now,” said a person aware of the developments. The proposal, if agreed, will need Cabinet approval.

Government officials also said there is uncertainty over the quantum of 5G airwaves available for telcos after agencies such as the Department of Space and the defence ministry are said to have requested premium spectrum for use.

However, according to an industry executive, the biggest reason for the delay in auctioning 5G airwaves is the “lack of clarity on whether Huawei will be allowed to deploy 5G networks in India.”

Unless this issue is resolved, India’s mobile phone operators won’t be able to build their business cases while preparing to bid for 5G airwaves, executives said. “Putting 4G before 5G will help the government to maximize monetization of spectrum,” said Rajiv Sharma, head of research at SBICap Securities