5G spectrum auction this year or early in 2020: Ravi Shankar Prasad

MUMBAI: Telecom minister Ravi Shankar Prasad has said that spectrum auctions will take place at the end of this year or early next year.

“By year end or beginning of next year, we propose to go for auction of spectrum and we have ensured India’s auction of spectrum in a clear and transparent manner,” Prasaid said at an industry event on Friday.

The DoT had initially in June outlined plans to hold the next spectrum sale — first since 2016 — by December 2019. But ET, in its August 27 edition reported that the sale is likely to be delayed to early 2020.

The government plans to hold the largest spectrum auction where some 8,293.95 MHz of airwaves at an estimated total base price of Rs 5.86 lakh crore. The auctions will see the debut of 5G spectrum, which will propel the telecom industry towards next phase of growth, besides sale of 4G spectrum

The sector regulator has suggested a base price for 5G airwaves at Rs492 per MHz and proposed a sale of a minimum 20 MHz blocks, which would mean a telco spending close to Rs10,000 crore for 20 MHz, and Rs50,000 crore for 100 MHz, rates which have been described as very expensive by telcos, who are under severe financial pressure, including high debt.

Prasad said that the Department of Telecommunications has noted the problems faced by the industry, reeling under a debt of almost Rs 8 lakh crore.

“Department will look into the problems of the telecom sector. All the initiatives taken in spectrum sharing and trading and communication policy is already in place,” said the minister.

However, he added that while the government will give its support, telecom service providers (TSP) too need to get their act together.

“We have to work as a team. The government will be open to assist, and facilitate, guide , and motivate. Government in turn expects TSPs to reinforce their own management, technology and services,” said Prasad.

The telecom sector’s debt is nearly Rs 8 lakh crore, with that of Bharti Airtel at Rs 1.16 lakh crore and Vodafone Idea’s at Rs 99,300 crore at the end of the June quarter. Reliance Jio Infocomm is the only company registering profits in the telecom industry after having unleashed a tariff war on its rivals that left them bleeding.

The telecom minister on Monday launched maritime communications services by VSAT provider Nelco.