DoT to auction mmWave spectrum, decides against allocation

On Thursday, the Department of Telecommunications, or DoT, said that it will auction the mmWave spectrum. After months of contention and speculation, the DoT has gone for the auction route, after it considered allocating spectrum administratively.

DoT Takes A Decision on mmWave Spectrum

After the DoT had asked TRAI to provide recommendations on September 13, TRAI floated a consultation paper earlier this week. TRAI, in its consultation paper, answered over 70 questions asked by the telecom department. Furthermore, it had earlier asked the department to provide details on the mmWave spectrum, regarding the use cases and the quantum available for sale.

The tussle for mmWave has been in the open for the last year or so. The satcom players have demanded the spectrum for their exclusive use, and historically, they have used the frequency. Actually, the mmWave band forms a part of a larger spectrum band called the Ka-band, which ranges from 26.5-40 GHz.

Telcos have said that they need at least 1 GHz of mmWave per operator in the beginning to build an efficient network. Further, as the networks mature, they will need a total of 2 GHz spectrum per operator in mmWave.

The view suggests that the government seeks symmetry in policy frameworks for both telcos and satcom operators. However, across the world, the Ka-band spectrum is simply allocated to the the satcom players. Therefore, the satcom players, mostly global players, have expected the government to follow the norms. However, this decision has to potential to not go down well.

An Equal Playing Ground?

The "auction" corner has been talking about how it would ensure a "level playing field", because everyone will get to auction for the spectrum. However, not all of the satcom operators can compete with telcos in that regard. Starlink and OneWeb can, and will, but apart from those two, no one else can invest the kind of money required in spectrum.

Therefore, the government was considering offering only a part of the mmWave spectrum for auction, between 24.5 and 28.5 GHz. Notably, 3GPP has standardized the mmWave band up to 29.5 GHz for telcos. The government will earmark the remaining 1 GHz of the band for satcom companies.

However, neither the telcos nor the satcom operators want the said bifurcation. It has to be realized that for telcos, the mmWave band might prove a crucial ingredient to build powerful 5G networks, and monetize it via use cases.  However, for satcom operators, mmWave remains the only way they can operate.

With the decision to auction the spectrum, the momentum will shift. The government wants 5G out by Independence Day 2022, and only time with tell how this plays out.