View: 5G spectrum, split circles, cut the knot

On Wednesday, the Union Cabinet cleared the auction of 5G spectrum scheduled to start in end-July. Till then, policymakers, telecom companies and industries eagerly await the windfall to be gained from 5G-capable networks providing massive machine type communication (mMTC), enhanced mobile broadband (eMBB) and ultra-reliable low-latency communication (URLLC). Simultaneously, the new technology poses thorny riddles: the setting of reserve prices for spectrum in the wake of failed auctions; demands by industrial entities to be made licensees; and the call for the use of indigenous technology.

India is a large and heterogeneous market with varying income levels and communication needs. While telecom has been a great equaliser with mobile and internet penetration at 84% and 60% respectively, each of the 22 designated telecom licence service areas (LSAs) continues to be quite heterogeneous in terms of the willingness and ability to pay across the range of digital services from voice telephony to gaming. This has made it difficult for licensees to come up with customised solutions for different market niches, a problem exacerbated by the three-firm structure – four-firm, if you include a rather vapid government operator.