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The Department of Telecommunications (DoT) in India has initiated the process for the next round of 5G spectrum auction by seeking reserve prices for various bands. The auction is estimated to be worth around ₹2.5 lakh crore. The DoT plans to include all unsold airwaves from the previous auction as well as additional quantum in the 37 GHz band or millimetre wave (mmWave) spectrum.

The upcoming sale will cover a wide range of airwaves, starting from 600 MHz and going up to above 37 GHz. However, the 6 GHz band has been excluded from the upcoming auction due to ongoing disagreements between telecom companies and tech industry players. The DoT has yet to make a final decision on the matter.

The Telecom Regulatory Authority of India (TRAI) will review the reference from the DoT and issue a consultation paper regarding the auction in the coming weeks. It is expected that only two players, Reliance Jio and Bharti Airtel, will participate actively in the bidding process. Vodafone Idea, the third private player, is currently facing financial difficulties and may not be in a position to participate significantly.

However, Bharti Airtel and Vodafone Idea have permits expiring in 2024 in certain circles, which could lead to some competitive bidding in those regions. In previous auctions, winning prices for circles such as UP (East) increased significantly due to the involvement of Bharti Airtel and Jio in protecting their business interests.

This will be the first time that mmWave spectrum in the above 37 GHz bands will be put up for sale. While mid-band is generally considered ideal for 5G deployment, mmWave spectrum is also suitable for rolling out 5G networks. Reliance Jio and Bharti Airtel have recently announced their 5G rollouts on mmWave spectrum (26 GHz) acquired in the previous auction.

Due to the lower price of GHz spectrum compared to mid-band, telecom companies can utilize a combination of both bands to efficiently deploy 5G networks. India currently has around 88,000 MHz of mmWave spectrum available for use.

In the previous auction held in August 2022, the government generated a record ₹1,50,173 crore. Approximately 71% of the 72.098 GHz of airwaves put up for sale received bids. The mid-band (3300 MHz) and mmWave band (26 GHz) airwaves were sold at base prices of ₹317 crore per MHz and ₹6.9 crore per MHz, respectively. Reliance Jio emerged as the highest spender, purchasing 5G airwaves worth ₹88,078 crore, followed by Bharti Airtel at ₹43,084 crore. Vodafone Idea spent ₹18,799 crore, while newcomer Adani Data Networks acquired spectrum for ₹212 crore.

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