New Delhi: Amid widespread concerns over exorbitant pricing of radiowaves including 5G, Telecom Minister Ravi Shankar Prasad on Monday promised "reforms" in spectrum pricing and said that auctions will take place in the current financial year.
Speaking at the India Mobile Congress 2019, Prasad said the government was aware and alive to some problems and challenges being faced by the industry.
"Spectrum auctions will be done this financial year... We are undertaking some reforms in spectrum pricing," he said.
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The Telecom Regulatory Authority of India (TRAI) had last year recommended auction of about 8,644 MHz of telecom frequencies, including those for 5G services, at an estimated total base price of Rs 4.9 lakh crore, but the financially-stressed industry that is buckling under high debt, had argued that proposed prices are unaffordable and exorbitant.
Some industry players had pointed out that the average price of 5G band auctioned in countries like South Korea, Spain, the UK and Italy comes out to be Rs 84 crore/MHz, whereas Trai's recommended price for the same band is 5 to 6 times higher at Rs 492 crore/MHz.
Ericsson to make 5G telecom gear in India
Swedish telecom gear maker Ericsson on Monday announced that it will start manufacturing 5G network equipment in India once the service is operational in the country.
"This year we can say we are ready to switch the production from 4G to 5G when it becomes operational in this country. We will produce in India, for India," Ericsson Head South East Asia, Oceania and India, Nunzio Mirtillo said at the India Mobile Congress 2019.
To establish India as 5G leader, price of 5G spectrum needs to be critically looked at: Jio
Reliance Jio said that the Government needs to set a clear roadmap for timely availability of spectrum and asserted that prices of 5G radio waves need to be "critically looked at".
"Government would need to have a clear roadmap for the timely availability of spectrum. The long delays between the spectrum auctions should end.
"Moreover, spectrum should be made continuously available to the industry between the two auctions at the price determined during the last auction," Reliance Jio Infocomm board member Mahendra Nahata said at the India Mobile Congress 2019.
Government needs to ensure enabling regulatory environment for telecom sector: Birla
Vodafone Idea Chairman Kumar Mangalam Birla said a thriving telecom sector was vital for building a new digital India and asked Government to ensure an "enabling regulatory environment".
"While we stand committed to support the growth of the industry, we seek enabling regulatory environment to ensure that necessary investments are made," Birla - who is also the chairman of Aditya Birla group - said at the India Mobile Congress 2019 here.
Stating that India's broadband user base of 600 million is second only to China, Birla said artificial intelligence (AI), Internet of Things (IoT) and robotics will drive the next wave of digital growth.
High spectrum, network deployment cost to take toll on telecom industry: Airtel
High spectrum price and cost of deploying networks are expected to take take a toll on debt-ridden telecom sector, a senior official of Bharti Enterprises said.
Bharti Enterprises Vice Chairman Rakesh Bharti Mittal said 75 per cent of cost of deploying optical fibre in the country for high speed broadband is the fees charged by local authorities.
"Current reserve price is seven times higher than the global peers'. When we look at the entire ecosystem that needs to be built, user cases for 5G technology needs to be built. This high price coupled with more capex deployment on sites and fibre is going to take a toll on telecom sector," Mittal said.
Govt promise of spectrum price reforms big relief for industry: COAI
The government's assurance on undertaking reforms in the spectrum pricing will spell a "big relief" for telecom companies, industry body COAI said.
Cellular Operators' Association of India (COAI) Director General Rajan Mathews told PTI that if there is adequate spectrum and the price is right, "operators will be interested to see if it makes sense to participate in upcoming auctions".
Terming spectrum as "life blood" of the industry, Mathews said Telecom Minister Ravi Shankar Prasad's promise of undertaking reforms in the spectrum pricing spells a big relief for the sector.
