The telecom companies in India are eyeing the 5G band of 3.5K to 3.6K MHz. The companies are gearing up to compete against each other in order to grab the position of the top bidder because being the top rank bidder will allow a company to have advantage over its competitors. The top rank bidder will be assigned the best unencumbered (not having any impediment) spectrum in the 3.5 Ghz 5G band.
The top rank is decided using a complex process where the telecom companies are assessed based on the role each company plays in pushing up the bid prices in each clock round. The 5G spectrum is being sold in a private auction to the telecom companies and the companies that have applied for the NIA are to participate in the auction. In a private auction, the price ticks up at regular intervals and a bidder can drop out any time. The last bidder remaining pays the current clock price and gets the item.
If a telecom company ups the price and others don't, then the telecom company will be the top bidder and has access to the certain advantages over the others. In case there is a tie between two bidders, then the record is assessed as to who is the bidder that stayed in the top for more clock rounds and so on and so forth.
The 3500-3600 MHz band has no other users which would restrict its use. The rank one bidder will be assigned the 3500-3600 MHz band and this band, because there are no other users has an advantage over other bands for the telecom company. Going downwards, the 3400-3500 MHz band. This band is used by ISRO. This band would be assigned to the number two rank holder. The disadvantage for the second rank holder has been highlighted by Bharti Airtel to the regulator. The ISRO uses the band for the NavIC system. It is an Indian constellation of eight satellites run by the ISRO and these satellites provide navigation and timing services. The Department of Space has indicated that there should be a buffer zone.
The third rank holding bidder will have it worse as the 3300-3400 MHz band is used by the Indian Navy and defence services in coastal areas. Considering India's vast coastline, the bidder will have a major disadvantage because they will not be able to use the entirety of the spectrum as they again will have to create a buffer zone. Airtel has suggested that the Navy and defence system should fully vacate this spectrum before it is auctioned off. The 3600-3630 MHz spectrum does not have the required equipment and eco-system globally and it will take atleast three to four quarters for its commercial deployment.
A 40 MHz in the 3630-3670 Mhz has been reserved for the BSNL and MTNL (Mahanagar Telephone Nigam Limited) as it would take a few years to commercially deploy 5G.
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