5G spectrum auctions in 2022, commercial 5G rollout by 2022-23

• The Finance Minister has announced that the 5G spectrum auction will be completed in 2022.
• Commercial rollout of 5G will begin in 2022-23.
• The government has also announced a production-linked incentive scheme for 5G.

The highly-anticipated 5G auctions will take place in 2022, Finance Minister Nirmala Sitharaman announced on Tuesday during the Budget 2022 session in the Parliament.

Sitharaman further added that the commercial rollout of 5G services will happen by 2022-23, which means by March 2023, we should have compatible 5G smartphones latch on to the 5G networks of private telecom players Reliance Jio, Airtel and Vodafone Idea.

HFCL could be one of the beneficiaries of this announcement since it makes optical fibre cables.

Making the announcement, Sitharaman specifically mentioned private players, which suggests that the state-run telco, BSNL, is still a ways away from getting access to the next-gen telecom technology.

“The required spectrum auctions will be conducted in 2022 to facilitate roll out of 5G mobile services within 2022-23 by private telecom operators,” Finance Minister Nirmala Sitharaman said.

In addition to this, Sitharaman also added that a production-linked incentive scheme will also be announced to push 5G technology in the country. It will be focused on design-led manufacturing.

The finance minister also announced that 5% of the Universal Service Obligation Fund (USOF) would be allocated for research and development (R&D) along with commercialisation of technology aimed at improving the proliferation of broadband to the rural areas of the country. USOF is collected from telcos, who pay 5% of their adjusted gross revenue to the government towards this.

“All villages should have the same access to communication facilities as urban areas,” Sitharaman added.

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