Union Cabinet Approves Refarming of 687 MHz Spectrum to Boost Mobile Services
Spectrum Refarming for Enhanced Mobile Services
The Union Cabinet has approved the refarming of 687 MHz spectrum for mobile services. Telecom minister Jyotiraditya Scindia stated that further actions will be guided by a committee of secretaries established by Prime Minister Narendra Modi. Speaking at an event hosted by COAI, Scindia emphasized the need for 2,000 MHz of spectrum by 2030, with the recent decision increasing the availability of radiowaves to 1,587 MHz.
Efficient Spectrum Allocation
The government aims to allocate spectrum efficiently based on demand. The telecom sector has been advocating for 2,000 MHz in mid-bands, ranging from 1,000 MHz to 6,000 MHz. Scindia reassured that the industry's needs will be met without impediments. While the recent decision provides more spectrum, there is still a need to acquire roughly 300 Mhz.
Vision for a Telecom Product Nation
Scindia shared his vision of India becoming a telecom product nation by 2030. He is engaging with telecom majors and OEMs to explore the establishment of Telecom Manufacturing Zones (TMZ). Transformations in the sector are anchored on five pillars: policy, technology, and ease of doing business. The Prime Minister has also emphasized that telecom will drive economic progress, urging a shift from bureaucratic hurdles to a more supportive approach. The telecom ministry has formed six advisory groups to address stakeholder issues and drive economic growth.
Industry Reactions and Concerns
The Cellular Operators Association of India (COAI), representing major telecom players, welcomed the cabinet's decision, believing it will enhance 5G services nationwide. However, the Broadband India Forum (BIF) expressed dissatisfaction and urged reconsideration. BIF President TV Ramachandran argued that the 6 GHz band should be delicensed to align with global standards, citing that over 84 countries have already delicensed the lower 6 GHz band for unlicensed use.
Concerns Over Spectrum Allocation
Ramachandran warned that if the lower 6GHz spectrum is allocated for IMT, operators might not bid due to a lack of global ecosystem support, potentially resulting in no auction revenues. The phased release plan includes an initial auction of 320 MHz.
India's telecom product exports have seen a significant increase from ₹8,400 crore a decade ago to over ₹25,000 crore today. This growth underscores the sector's potential and ongoing efforts to meet industry demands while driving economic development through strategic initiatives and collaborations.
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