The Department of Telecommunications (DoT) is likely to come out with a 5G spectrum allocation policy by the end of this year. DoT had formed an internal committee for looking into recommendations of Telecom Regulatory Authority of India (Trai) on spectrum auction. The commercial rollout of 5G services in India is expected to happen by 2020.

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A report by steering committee, set up in September 2017, on 5G roadmap was released on Thursday with suggestions on wide areas. The economic impact of 5G services is expected to be over $1 trillion, as per the report. 5G would be critical for various segments in the society, including agriculture, education, public safety and disaster management, among others.

“India is looking to position itself as a leader in 5G technology, so we are looking at use cases unique to India,” telecom secretary Aruna Sundararajan said. India should focus on innovation as the country has significant design capability.

“5G is a massive new opportunity...it can be leveraged for major societal transformation. 5G will enable rapid transformation in agriculture, manufacturing and social sectors and India can emerge as a technology innovator worldwide,” AJ Paulraj, chairperson of the committee, said.

The report also suggested setting up of a panel to advise on building spectrum technology infrastructure in India. A creation of a “5G Program Office” within DoT with “Special Program Coordinators” has also been recommended.

Free bandwidth would be assigned for trials for a fixed timeframe to allow setting up of the network, it suggested. “Given a six-month active trials period, spectrum licence may be provided for 12 months. After the trials are completed, if the telecom service provider wishes to convert the trials deployment into revenue deployment, they may be provided favourable terms to purchase spectrum under the auction regime,” the 62-page report said. Most regulatory guidelines may be promulgated by March 2019 to facilitate early 5G deployment.

However, the government needs to keep in mind that even after the entry of 5G into Indian networks, 2G, 3G and 4G will continue to remain in use and may take 10 or more years to phase out.

DoT may provide financial support to telecom firms related to deployment - backhauls, site acquisition, civil works and trials, manpower and related operational costs, according to the report.

Additional financial support may be offered to internet service providers (ISPs), technology companies, local governments and economic verticals to participate in the trials.

Also, partial financial support for capital expenditure for equipment makers may also be considered based on equitable risk sharing. It suggested a broad planning estimate of Rs 300 cr in the first year, Rs 400 cr in second, Rs 500 cr in third and Rs 400 cr in fourth year.

With over 300 mn Indian middle class living in urban areas, a variety of 5G business models for new services are likely to be successful. However, economically weaker sections of the population will need special help to benefit from 5G technologies and this segment living in smaller towns that require special attention, the report said.