SYLLABUS SECTION: GS III (ECONOMY)
WHY IN THE NEWS?
Recently, Union Cabinet approves a mega 5g auction of airwaves capable of offering fifth generation, or 5G services.
- Prime Minister Narendra Modi recently called for a rapid rollout of 5G services.
- He ask the government and the industry to work together for the same, as the 5G service is expect to contribute $450 billion to the Indian economy in a decade and a half through economic growth and job creation.
- The 5G spectrum in nine frequency bands will be auction to telecom operators like Bharti Airtel and Reliance Jio.
- A total of 72097.85 MHz of spectrum with a validity period of 20 years.
- It will be put to auction be held by the end of July 2022.
- The auction will be held for spectrum in various bands (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz), and High (26 GHz) frequency bands.
- It had pitch for the direct allocation of spectrum for private 5G networks to enterprises at a nominal administrative fee.
- 5G services will initially be introduce in 13 major cities in India including Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gandhinagar, Gurugram, Jamnagar, Hyderabad, Pune, Lucknow, Mumbai, and Kolkata.
- It would drive digital transformation, augment industry efficiencies and lead to greater economic benefits
- It is expect to contribute 8% to the Indian GDP in 2022.
- The next generation 5G rollout is highly expect by the end of this year, but there are some challenges.
- The 5G rollout will require a crucial infrastructural change in the communication system.
- Consumers will be under financial liability to upgrade their cellular technology for a better transition from 4G to 5G.
- Lack of capital adequacy with telcos such as Bharti Airtel and Vodafone Idea can be consider a challenge to rapid 5G rollout.
BROADBAND INDIA FORUM (BIF):
· Its members include Google, Amazon, Meta, and Tata Consultancy Services.
· Telecom companies have been opposing direct allocation of 5G spectrum to them saying it will distort the level playing field and rob the government of revenues.
Read more: UPSC CURRENT AFFAIRS
Source: The Hindu