Union Cabinet Approves Refarming of 687 Mhz Spectrum to Enhance Mobile Services by 2030

The Union Cabinet has sanctioned the refarming of 687 MHz spectrum for mobile services, with further actions to be guided by a committee of secretaries established by Prime Minister Narendra Modi, according to telecom minister Jyotiraditya Scindia. At an event hosted by industry body COAI, Scindia highlighted the need for 2,000 MHz of spectrum by 2030, with the recent decision increasing available radiowaves to 1,587 MHz.

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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 assured that the industry's needs will be met without hindrances in India's digital telecom landscape. "That still leaves a gap of roughly 300 Mhz. So, the ask is not over," Scindia stated.

Telecom Industry's Future Plans

Scindia expressed his vision for India to become a telecom product nation by 2030. He is engaging with telecom majors and OEMs to explore the establishment of Telecom Manufacturing Zones (TMZ). "I think that time for TMZs has come," he remarked. Transformations in the sector are anchored on five pillars: policy, technology, and ease of doing business.

The Prime Minister emphasises that telecom will propel economic progress, urging a shift from red-tapism to a red carpet approach. The telecom ministry has formed six advisory groups to address stakeholder issues and drive economic growth. "We rolled out a very ambitious scheme," Scindia noted regarding production achievements and job creation.

Industry Reactions and Concerns

The Cellular Operators Association of India (COAI), representing Jio, Airtel, Vodafone Idea, welcomed the cabinet's decision. They believe it will enhance 5G services nationwide. COAI Director General SP Kochhar stated, "It is extremely heartening to know that concrete steps have been taken...to allocate part of it to IMT immediately."

However, 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. He noted that over 84 countries have delicensed the lower 6 GHz band for unlicensed use.

Ramachandran warned that if the lower 6GHz spectrum is allocated for IMT, operators might not bid due to a lack of global ecosystem support. This could result in no auction revenues as no operator would bid for a non-harmonised band globally. The phased release plan includes an initial auction of 320 MHz.

India's telecom product exports have significantly increased from Rs 8,400 crore a decade ago to over Rs 25,000 crore today. This growth reflects the sector's potential and ongoing efforts to meet industry demands while fostering economic development through strategic initiatives and collaborations.