The wait for 5G will end soon, the central government told when spectrum will be auctioned
There is good news for people waiting for 5G. The central government has given big information regarding the auction of 5G spectrum. Telecom Minister Ashwini Vaishnav said on Wednesday that the 5G spectrum auction will probably take place in February 2022. The government can try to get it done in January also. According to the news, Vaishnav said that the reforms package approved by the cabinet in the telecom sector are enough for the existing companies to survive in the market and will ensure strong competition in the sector.
Government gave big package
He also said that further reforms and structural changes are under consideration. ‘More companies should come in the area.’ The Union Cabinet on Wednesday approved a major reform package for the stressed telecom sector. The package includes a four-year moratorium from payment of statutory dues, permission to share rare radio waves, change in the definition of AGR (gross adjusted revenue) and allow 100 percent foreign direct investment through the automatic route.
The reforms, including the moratorium, will be implemented from October 1. Vaishnav said, “The reform package is good enough to ensure competition. Certainly this is better in terms of survival of telecom companies, maintaining competitiveness in the sector and strengthening the sector. Some other changes are proposed. I am sure that more companies will come from him in the area.
The minister said that the government is fully committed to take forward reforms to strengthen the telecom sector. ‘We do not intend to stop.’ Vaishnav said that after giving information about the package on Wednesday, he spoke with the major companies of the sector and expressed happiness over the measures announced.
“All the big companies said that whatever was needed, they have been taken,” the minister said.
When will 5G come?
When asked about the auction of 5G spectrum, he said that it will happen in the last quarter of the current financial year. “It is likely to happen in February 2022…we can try in January also,” the minister said. On the industry’s concern over the high price of spectrum, the minister said, “TRAI (Telecom Regulatory Authority of India) is deliberating…let the TRAI deliberations end and their final report come.” It would be better to talk about it at that time.
He said that the government will issue circulars in detail on each decision taken under the telecom package. The circular regarding change in AGR definition will come in 2-3 weeks. The AGR definition refers to the exclusion of non-telecom items. He said, “The thinking behind this reform package, in which decisions have been taken keeping in mind the next 25 years…”
Giving information about the four-year moratorium and equity for companies for payment of statutory dues, he said that once the moratorium period is over and the annual installment period starts ‘we can convert that installment into equity’. This may improve the liquidity position. The minister also said that it will all depend on the situation at that time and whether further intervention is required. He said that if a company is unable to make interest payments even during the moratorium period, they have the option to pay the interest amount as equity.
