The Union Budget 2022-23 has given a much-needed push for 5G acceleration by setting the timeline for conducting spectrum auction this fiscal year. When rolled out, 5G will represent a quantum leap over the current 4G mobile networks. If successfully implemented, it can deliver 10 times faster internet and more than 10 times improvement in latency (the time difference between sending and receiving messages) over 4G. This year’s Budget has also taken a ‘digital first’ stance with significant focus on new initiatives such as promoting drone start-ups, digital university, giving data centres infra status, and a digital ecosystem for skilling, besides adopting blockchain technology. The decision to establish 75 digital banks in 75 districts to encourage digital payments is another indication that the Centre is serious towards building a digital economy. But all this can be delivered only if every Indian citizen has access to secure, reliable, and affordable high-speed broadband services.
Although broadband services have improved over the last five years, consumers are still grappling with basic network issues like voice call drops and interrupted data services. Inadequate optical fibre infrastructure has further exacerbated the status. While the Centre has been trying to fill this gap through Bharat Net since 2010, procedural delays and lack of inter-departmental coordination have pushed the completion of this project to 2025. In this context, 5G becomes extremely critical to undertake the various programmes under the Digital India mission. Globally, 200 telecom operators in 78 countries have already launched commercial 5G services. A clear focus on 5G spectrum auctions and rollout will help India catch up with the rest of the world.
However, the Centre needs to do more than merely making spectrum available for 5G to take off in a big way. Telecom operators are the at the centre of rolling out 5G services but mounting debt and low tariffs have put them under huge financial stress. Barring Reliance Jio, the other three operators may find it difficult to shell out the ₹1 lakh crore required to buy 5G spectrum. India cannot afford to have another failed auction just when data consumption in the country is growing exponentially. Therefore, the telecom regulator must review the reserve price for spectrum in the context of the larger impact broadband services will have on the overall economy. The Centre should also help by further lowering license fees and spectrum usage charges so that telecom companies can free up capital that can then be invested in 5G networks. 5G will enable the delivery of critical services such as telesurgery and Internet of Things over a mobile network with unprecedented efficiency, in addition to opening the floodgates for innovative applications that require a massive amount of high-speed bandwidth. The biggest benefit for millions of mobile users in a country like India is that 5G promises to make wireless networks close to what wireline broadband network offers — uninterrupted service and unlimited bandwidth. Hence, both 5G and Bharat Net should be executed in all seriousness.