📶 The Real Reasons India Doesn't Have 5G
We've been talking about 5G internet for years now but why are we unable to implement it?
The need for speed is real especially when it comes to the internet.
This is why India has been trying to roll out 5G network for years now.
But even though most countries have now already started developing 6G tech, we are struggling to launch 5G spectrum auctions. Why?
🤔 Why is India Lagging Behind in 5G?
Talks of launching a 5G network in India have been going on since at least 2016. But some of our auction plans were ruined by Covid.
However, a major reason why spectrum auctions can’t be held is the high price of spectrum in our country.
Confused? Let us walk you through what spectrum is and how spectrum auctions take place in India.
🗼 All About Spectrum
Spectrum is basically the airwaves all around us through which telecom companies broadcast network signals.
But you can’t just broadcast these signals randomly.
They need to be broadcasted at different frequencies to reach users.
The higher the frequency, the better the network.
So, telecom companies have to bid to get the rights to these frequencies.
And it is not a one and done auction. Companies need to buy the rights for frequencies in all the areas in which they operate.Â
So, if your network doesn't catch in on a particular area, it means the company has opted out of buying the rights for that region.
But spectrum prices in India are too high, making it difficult for companies to bid for them.
For instance, in 2016 the government-held spectrum auctions for 2,354.55 MHz at a reserve price of Rs 5.60 lakh crore. But telecom companies could only afford to buy 40% of the offered spectrum.
And 5G network prices are set to be even higher.
So, telecom companies have been asking the Telecom Regulatory Authority of India to reduce spectrum prices by 90%!
Wait, is this demand justified?
Well, kinda. You see, other countries sell spectrum for much less as compared to India.
For instance, TRAI offers 1Mhz of spectrum for Rs. 492 crores whereas the UK offers it for a price equivalent to Rs. 70 crores and Australia for a price equivalent to Rs. 30 crores.
So, TRAI also agreed to reduce prices but only to Rs. 317 crores per Mhz. But it also reduced the validity of the spectrum from 30 years to 20 years.
An almost negligible discount but a discount nonetheless.
So, companies are now gearing up for the coming auction.
But why can't these companies use the spectrum that they already have?Â
What's the need for a new auction?
You see, the whole point of getting a 5G network is to ensure we can watch Netflix without buffering and join Zoom calls without reconnecting.
The old network frequencies can't provide these experiences.
So, we need new spectrum bands.
Preferably, within the 24 GHz to 40 GHz range
And that's where the second problem lies.
In India, we have two kinds of network providers: our regular telecom providers like Jio, Airtel and Vodafone and satellite network providers like Airtel's OneWeb and Starlink.
Now, all of these are rooting for the 28 GHz frequency band (as it provides high speed with minimal delays), which is a problem.
Why?
Because even though air is infinite, spectrum is finite. You cannot allow a lot of users to use the same frequency range, otherwise, the network will crash, defeating the whole purpose.
So, satellite broadband providers want dibs on the 28 GHz range. They have already been using this band, and claim that because they can reach more users (even in rural areas where setting up traditional network infrastructure like towers is difficult), they should be allowed uninterrupted use of this band.
But telecom companies claim that this would leave little affordable 5G spectrum behind for them.
This debate is one reason why the government has decided not to auction this band for the time being.
Another reason that these auctions were delayed was the exclusion of Huawei and ZTE, both Chinese companies, from our 5G trials.
You see, many countries including the US believed that these companies were run by the Chinese government and if they were allowed to build 5G equipment they would transfer data back to China.
So, for national safety reasons they were excluded from trials in 2020.
But major telecom companies like Jio and Airtel depended on them for 5G equipment.Â
They now had to make other deals and find other vendors who could make this equipment for them.Â
This also delayed 5G deployment.
But now against all odds, we are set to have auctions around August.
And around six months after these auctions, you and I will probably forget all about that dreaded word buffering.
Here's hoping that the auction process suffers no more delays and that the new 5G plans are not too heavy on our pockets.
P. S. Even if spectrum auctions are delayed, telecom companies are working on another way to bring 5G to us: Underwater Cables (you can read all about them here).
âš¡In a line: India has been trying to deploy 5G for years now, but high prices, a spectrum debate and banning Chinese companies have all been delaying this rollout.
💡Quick question: Will a new problem further delay the 5G rollout?
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