Sansad TV Perspective: 5G Spectrum Allocation

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on 5G Spectrum Allocation.

Anchor: Vishal Dahiya

Guests:

1. Vimal Wakhlu, Former Chairman & MD, TCIL
2. Sandeep Aggarwal, Chairman, Telecom Committee, PHD Chamber
3. Subhomoy Bhattacharjee, Consulting Editor, The Business Standard

Context: The government issued spectrum allocation letters to telecom service providers.

Highlights of the discussion:

• Introduction.
• Industries response to auction.
• Potential of 5G.
• Challenges that remain.
• Government efforts.
• Future course of action.

Introduction:

• 72,098 MHz spectrum was put to auction, of which 51,236 MHz or 71% of the total was sold with bid amounting to 1,50,173 Crore rupees. 
• With this spectrum allotment, India is in the final stage of rolling out high-speed 5G telecom services. 
• 5G technology’s main benefits are high speed, low latency, high connection density, and greater reliability. 
• 5G services have the potential to create new age businesses, generate additional revenue for enterprises, and provide employment arising from the deployment of innovative technologies. 

For more on the 5G auction, click on the links below: 

UPSC Exam Comprehensive News Analysis. Aug 5th, 2022

UPSC Exam Comprehensive News Analysis. Aug 7th 2022

Industry response and experience:

• Industries were satisfied with the fair and transparent way of conducting the auctions.
• The spectrum availability was very good. Therefore heavy bidding and going beyond prices were not necessary and this was commended by the business majors.
• Harmonisation of the spectrum also happened smoothly without any objections by the operators.

Potential of 5G in different sectors:

• 5G technology has a great potential of transforming the education sector. The use of Augmented and Virtual reality can be enabled with it.
• Similarly, it can be a game changer for the health sector also.
• The Smart Cities Mission can be a major beneficiary of the technology.
• In the field of banking and financial services, technology will have a greater role to play. For instance, financial services saw a great revolution with ‘Paytm’ enabled by internet connectivity even for the smallest vendor.
• Industry 4.0 will also be positively impacted by it, as automation forms its backbone.
• It will be useful in sectors like precision agriculture, water, and air quality management, traffic mobility management, energy sector, security, and governance.
• It will strengthen and provide remote medical and banking services in rural areas.
• It will further substantiate technologies like Artificial Intelligence, machine learning, Big data analytics, the Internet of Things, and drone services.
• Going forward in the domain of future technology like automated cars and robotics, 5G would be necessary.

Initial Impact of 5G:

• The initial impact will be felt in the manufacturing sector as it is the readiest sector or the most prepared one. 
• The infrastructure-related services are also equipped to incorporate the technology.
• Also since the 5G rollout will be a gradual process, its response in various sectors will be seen as the opportunities get realized.

Challenges that remain:

• There is a very low level of fiberisation, which means additional spending of 1.5 to 2.5 trillion rupees is required to expand the network.
• The acceptance and application of the technology by different sectors like healthcare, agriculture, and education will be a challenge.
• 5G will be a premium service, costing much higher than the existing 4G technology.

Measures taken by Government to complement the 5G rollout:

• The Production linked incentives scheme for telecom and 5G equipment is a significant development that will gradually reduce reliance on imports.
• Policy decision on relaxation of spectrum usage charges on revenue.
• The option for the companies to pay the dues in 20 instalments. This will lower the upfront cost and can ensure the rollout of services in at least one city by the end of this fiscal year.

The future course of action:

• Around 8 lakh crore investment would be further required.
• The industry needs to lay a fibre network of approximately 2.5 billion kilometres and ensure a tower every 30 meters.
• Moreover, Internet connectivity should be declared a utility like water and power.

Conclusion:

The auction will also improve the quality of the 4G service apart from enabling the 5G service. The dream of the former President of India, Dr. A.P.J. Abdul Kalam of having a program like PURA (Providing Urban amenities in Rural Areas) can be realized with the 5g technology.

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