Government Might Slash 5G Base Price to Aid Telecom Operators

Trai has currently suggested a base price of Rs 492 crore per MHz for 5G spectrum which is opposed by telecom operators

By July 29th, 2020 AT 2:41 PM

The Government of India might slash the base price of the 5G spectrum to relief the telecom operators if they pay more money and equip telecom gears from non-Chinese vendors. All the telecom operators have already addressed that base price of Rs 492 crore per MHz for 5G spectrum is exorbitant. Also, telco giant Bharti Airtel has marked that it will not participate in the 5G auction with the base prices fixed by Trai as it is the most exorbitant in the world. As reported by ET Telecom, the government is aware of the increased network deployment costs in the absence of Chinese telecom gear makers Huawei and ZTE. Thus, to decrease the pressure from telecom operators, the government is planning to reconsider the base price of the 5G spectrum.

4G Spectrum Auction Might Happen in October-November

As per government officials, Digital Communications Commission (DCC) has accepted the base price of the 4G spectrum fixed by Trai. However, the pricing of the 5G spectrum is still under consideration. The 4G spectrum auction might happen in October-November. As of 5G auction, it is expected that the auction might not happen this year. Since the government has not decided the auction date, it can lower the 5G prices to ensure better competition in the auction.

Deployment Cost will be Increased by 15-20%

The government has already barred Chinese telecom gear makers from supplying equipment to state-owned telcos BSNL and MTNL. Also, private telcos are slowly shifting attention towards non-Chinese telecom gear vendors like Ericsson, Nokia and Samsung. However, Chinese companies have offered the lowest rates for telecom equipment. Now, the dependency on non-Chinese telecom vendors will increase the network deployment costs by 15-20%, and the burden will be on industrial and retail customers.

Reliance Jio is Awaiting Confirmation for 5G Trials

Reliance Jio has developed its own 5G technology which is ready for 5G trials. However, the largest telecom operator of India is waiting for 5G spectrum for starting the trials. Earlier the telco proposed a tie-up with Samsung for trials. But the telco has decided to go solo for trials with its own developed technology.

Shrijan loves the process of creating content in various verticals, whether it be words, sounds or videos. He's also inclined towards digital marketing and tech industry developments. The art of creation always intrigues his interest.

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