#SpectrumAuction : Explained What The Auction Is Really Is About; The Bidders; And How 5G Claims To Be Different?

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India is in the final stage of rolling out high-speed 5G telecom services with the much-anticipated auction for the spectrum likely to be completed today.

The Union Cabinet chaired by Prime Minister Narendra Modi had recently approved the Department of Telecommunications (DoT)’s 5G spectrum auction through which spectrum will be assigned to bidders to provide 5G services to the public as well as enterprises.

Here are some of the pointers relating to the high-speed 5G services, spectrum auction, and the formal launch date:

What is 5G, and how is it different from the current 3G and 4G services?

5G is the fifth-generation mobile network capable of transmitting a large set of data at a very rapid speed. In comparison to 3G and 4G, 5G has a very low latency which will enhance user experiences in various sectors. Low latency describes the efficiency to process a very high volume of data messages with a minimal delay.

The 5G rollout is also expected to bring more development in remote data monitoring in sectors such as mining, warehousing, telemedicine, and manufacturing, among others.

Who are the participants?

* Reliance Jio, Adani group, Bharti Airtel, and Vodafone Idea are the four major participants in the spectrum auction.

How much revenue will the government make from the auction?

* Department of Telecom received total bids worth Rs 1.45 lakh crore on the first day of the auction.

* Revenue from the auctions was initially estimated to be Rs 80,000-90,000 crore.

* Reliance Jio had put in Rs 14,000 crore as earnest money deposit (EMD), more than half of the amount submitted by the bidders for the 5G spectrum auction. The second highest amount of money as EMD has been put in by Bharti Airtel Limited at Rs 5,500 crore, and for Adani Data Networks at Rs 100 crore. * Vodafone Idea Limited had deposited Rs 2,200 crore as EMD for the 5G auction. EMD amounts clearly indicate the company’s plan for picking up the spectrum in an auction.


* 5G services are expected to be about 10 times faster than 4G.

Allocation of the spectrum and the formal launch of services:

* Allocation of spectrums to the telecom operators is expected before August 15, and initial 5G services in the country will start by September-October.

* High-speed 5G telecom services are expected to be offered in several cities in the county by the end of the year 2022.

Adani Group forays into the telecom sector:

* This is the first time that the Gautam Adani-led Adani group, which recently forayed into the telecom sector, participated in the bidding process of the 5G telecom spectrum auction.

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