TECH SUPPLIER Jul 2022 - Market Note - Doc # AP47357021
India's 5G Auction Announcement Promises Commercial Services and Private Networks
This IDC Market Note discusses the upcoming 5G auction by the Department of Telecommunications (DoT) scheduled on July 26, 2022. The DoT accepted the recommendations of the Telecommunications Regulatory Authority of India (TRAI) for the issuance of spectrum for several 4G and 5G spectrum bands, but this report will focus on the recommendations for 5G frequencies that are to be auctioned. The government has allowed private networks to be set up under certain conditions. It also accepted TRAI's recommendations for a 39% cut in reserve prices and made payment terms flexible including doing away with spectrum usage charge (SUC).
"Assuming a seamless auction and speedy disbursal of spectrum assets thereafter, India is likely to see commercial 5G services launch by CY4Q22," says Shiv Putcha, adjunct research director, IDC Asia/Pacific. "Moreover, the decision to allow 5G private networks to be deployed by enterprises will be a great boon for digital transformation in the country, with enterprises now having a range of options to source spectrum, from direct procurement to leasing to managed services through communications SPs," he adds.