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ARTICLE · 26 APRIL 2022

Union Budget 2022 Corporate Insights

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It is proposed that Government would conduct a 5G spectrum auction in FY 2022-2023 for the rollout of 5G telecom services in India. Auction of 5G spectrum,...

IndiaMedia, Telecoms, IT, Entertainment
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5G SPECTRUM AUCTION AND BOOST IN INVESTMENT IN TELECOM SECTOR

It is proposed that Government would conduct a 5G spectrum auction in FY 2022-2023 for the rollout of 5G telecom services in India. Auction of 5G spectrum, in particular is expected to provide growth and enhance opportunities in the telecom industry. It has also been proposed to launch a scheme for design-led manufacturing to boost 5G in the country. A scheme for manufacturing under 5G will be set up under the Production Linked Incentive scheme. 5% of annual collections under the USO fund will be allocated. This will be used for R&D. Completion of BharatNet is expected under 2025.

Impact: This move of 5G spectrum auction roll-out and the commitment to roll out optical fibre in all villages by 2025 will give an additional thrust to investment in new technologies in the telecom sector and will also bring more FDI in the sector.

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