5G Network Auctions and Developments –  What we know and, when you will have it?

Due to the rise in the number of mobile devices especially in India, people most likely use them for various tasks and activities, such as communicating with friends and family, to order take-out, to managing finances and even to coordinate with business internal teams over cloud computing technology. With the increasing amount of data being transmitted through wireless networks, it’s no wonder that we’re seeing a major push for 5G technology.

Government of India has recently announced the timeline for 5G spectrum allocation via SMRA auction method which is set to be held on July 26, 2022. A total of 72,097.85 MHz of spectrum worth at least Rs 4.3 lakh crore will be put on the block during the auction and the top Telecommunication Service Providers (TSPs) like Reliance Jio Infocomm Ltd., Bharti Airtel Ltd., Vodaphone Idea Ltd.and Adani Data Networks Ltd. has expressed their intention to heavily bid for 5G spectrum bands to hold their ground in the industry. The upcoming 5G spectrum auction is expected to be a huge deal because 5G is going to help develop the next generation of wireless data networks, as it promises to provide much faster and more efficient data transmission than the current 4G LTE networks.

The problem is that the spectrum being auctioned off is very valuable, and it’s likely that only a few companies will be able to afford to buy it. This could create a situation where a few large companies control the 5G market, and that’s not good for competition or consumers. That’s why you should care about the 5G spectrum auctions. If we want to have a competitive 5G market, we need to make sure that there is enough spectrum available for all of the companies that want to build 5G networks. Hence, it is crucial to understand the potential developments and use-cases in the adoption of 5G technology.

On July 11, 2022 – Adani Group has also intimated of participating in the 5G auctions and has invested a pool of 2800 crores for  acquiring 24.25 – 28.5 GHz frequencies. Within this quantum of 400 MHz, high-end support can be provided by establishing highly-sophisticated Captive Private Networks through collaboration of various application services. Many investors are also keen about the possible use-cases by the Adani Group and the future potential threat to the existing TSPs. The 5G spectrums do not have a very wide network connectivity range, hence it is ideal for speedy private network solutions and engineering. Adani Group said in a Statement “We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations”^[1]. The company also has plans to expand further in education, healthcare and skill development in rural areas to provide 5G accessibility to such areas.

Working of Network explained

In today’s world, all the communications happen over the transmission and propagation of ‘Radio-waves’. Supreme Court, in the 2008 2G-scam case, declared that the radio-waves is a natural resource which is necessary for the ease of communication, hence it is important for the government to regulate so as to ensure that there is fairness and no arbitrariness in the allocation/ licensing of the frequencies/ spectrum bands of radio-waves across different service providers.

“Spectrum Allocation” is defined as ‘principle of designating a band for specified use of by the Service Provider^[2]’. The government uses an e-action method called the SMRA Method to sell rights/ licenses and to transmit signals over specific bands depending on the specific use-cases. In this e-auction method, multiple spectrum bands are simultaneously offered for bidding to different service providers without disclosing the information concerning the bidding information of authorized licensed service areas of other participants. Such accessibility or disclosure of bidding information by other players may influence the bidding process. The government follows strict ‘Activity Rules’  to ensure that the bidding process is fair and is not conducted in an arbitrary manner. Further, the bidding is conducted over multiple clock rounds until the bidding activity stops or 100% acquisition of the spectrum is done. Once the spectrum is allocated to the winning bidder, the service provider is given a green-light to establish the said network/ technology to provide such services in the given licensed service areas.

It is important to note that 5G spectrum bands are very high frequency bands that are able to carry and transmit large amounts of data in seconds as opposed to the traditional 2G or 3G bands. Due to the increase in the data-consumption, especially after the Covid-19 pandemic, the service providers may require a whole different and newly upgraded infrastructure to be able to reach the full potential of the 5G technology.

Water-pipe theory

To fairly understand the concept, let’s take an analogy of a water-pipe, wherein a 10cm diameter water-pipe will only take a small amount of water as opposed to a 50cm diameter water-pipe which can relatively carry a large amount of water, say from point A to point B. The water in the pipe correlates to your capacity requirement and desirable speed. If you try to push too much data through a small pipe (let’s say a 10mbps pipe), we will reach a point where there is network congestion and the users may experience slower network speeds, which maybe even cause interruptions in the network bandwidth. Further, the amount of speed gets reduced if you’re connected to more than 2-3 devices.

5G Network through 4G pipes

Even though there is no specific 5G network infrastructure yet and due to the vast bandwidth spectrum allocation by the government, the companies may use the existing 4G infrastructure to provide some of the 5G network capabilities. There are broadly 2 frequency spectrums that can be used by the TSPs and other companies for the early adoption of this technology.

#1 5G Spectrum Range 1 – varying between 3-6 GHz. These wavelengths can be used with the existing 4G framework and are compatible with the existing wireless mobile communication networks to carry out significant increase the in data-speeds, ranging between 100-900 Mbps.

#2 5G Spectrum Range 2 – varying above 24 GHz (also called Milimeter wavelength bands or mmWave). These wavelengths may be used for 5G wireless, Internet of Things (IoT), and other advance spectrum-based services, including satellite broadband services,

It is pertinent to note that the size of the wavelength is indirectly proportional to the range/connectivity reach of the said communications. Picking up the ‘water-pipe theory’ (explained above), these frequencies require a very largely sized water-pipes for the data communication to happen. Without any interruptions, the users/businesses can experience above 1GBps data rates. Through collaboration focused on applications, these highly sophisticated technology can often be used in Machine-2-Machine communications or where there is critical use case and capacity -intensive requirement. For example, fleet management., supply chain management, smart-agriculture. automation, safety and surveillances, remote health management, smart-homes, smart-warehouses, Industry 4.0, smart-cities, smart-utilities including power, water, gas etc.

The National Frequency Action Plan 2018^[3] has also given a formal recognition of ‘Short-ranged devices (SRDs) – for example, medical implants, ground-probing radars by security, utility agencies and Ultra-Wideband Devices (UWDs) – for example, M2M communication and IoT devices in order to further pave a way for use of M2M communications.

In case of B2B communications, or as the trend goes by- for Machine-to-Machine communication, the current 4G infrastructure is not sufficient to provide the required network capacity, especially  where there is engagement of much more sophisticated technology and sensitive use-cases wherein even a mere mili-second’s delay would cause a significant harm. It is worth mentioning that higher frequency bands have the worst penetration capabilities and hence the current 5G network use-case can only be limited to the Captive-Private-Networks [CPN]. The Captive Private Network is basically a non-public network for providing services using ‘Network slicing’ technology over it’s Public Land Mobile Network, which is established using the IMT 2020 technology(used for 5G networks)^[4]. Network slicing allows a company to carve out and create multiple end-to-end networks on a common infrastructure platform thereby giving quick access and control of the information. It is the responsibility of the service provider to maintain the Quality of Service standards while providing such services in an isolated geographical network-area. The said network is governed by the terms and conditions and the guidelines, which are issued by the Department of Telecommunication from time to time. These are all terristerial based networks. A license for establishing a CPN based network can also be directly obtained from the Department of Telecommunication as opposed to the standard SMRA auction method, under demand studies and recommendations from the Telecom Regulatory Authority of India [TRAI].

Analysis and conclusion

The demand for a better connectivity surged after the global Covid-19 pandemic hit and due to the movement restrictions, people were forced to shift to an online space to support remote working, online learning and automation. Many companies invested in digital infrastructure to able to cope-up with the global pandemic. While the initial investments could be money-intensive, however the companies soon realized how much labour-cost, workplace-safety and security issues can be resolved in order to run their business operations via online networks.

4G network changed the way how we consume information and entertainment have gradually become diversified. The adoption of 5G networks would further drive the grown of new industries. A 2021 global Deloitte study showed 76% of the more than 400 surveyed executives believe 5G will become the most critical network technology within the next three years. By offering significant performance improvements—such as faster speeds, increased data capacity, lower latency, greater device density, and precise location sensing—these new wireless technologies are already enabling novel solutions, including autonomous vehicles, precision automation and robotics, telemedicine and telesurgery, immersive retail and entertainment experiences, and augmented-reality workplace collaborations^[5]. In order to scale up the 5G operations, it would be necessary for the service providers to deploy the reasonable, compatible and relevant technology devices.

5G networks are important for business-to-business communication and would not really attract the average consumer-base as of now. However, adoption of 5G technology by the Adani group could further increase the potential use-cases of the 5G networks in the B2C domain.

“India’s data consumption is more than what is seen in highly-developed nations. More investments are needed in infrastructure.” Ashwini Vaishnaw, who is the Union Minister for Railways, communications, electronics and Information technology has recently also raised the said concern.^[6]

As the businesses are diving into 5G networking, it would also get into building infrastructure for such networks, which in-turn could be the potential infrastructure-base by other or small network/service providers. The said 5G infrastructures can be acquired on circuit-lease basis which could also open another revenue stream for Adani Group.

Path-breaking developments ahead in 5G technology

Communication Service Provider- Ericsson, French aerospace company- Thales, and wireless technology innovator- Qualcomm Technologies Inc., are planning to take 5G into space through a network of Earth-orbiting satellites in the lower earth orbit (LEO).[7] After having each conducted detailed research, the parties plan to enter smartphone use-case focused testing and validation of 5G non-terrestrial networks (5G NTN). The result could effectively mean that a future 5G smartphone could use 5G connectivity anywhere on Earth and provide complete global coverage for wideband data services, including places normally only covered by legacy satellite phone systems with limited data connectivity capabilities. However, in order to achieve global coverage, it would be important for the consumers and businesses to fully shift to 5G infrastructure i.e., smartphones, satellite payload and other 5G network pieces on the earth. Such an arrangement can be made by big companies so as to enable global connectivity for transportation, energy and health sector use-cases.

As 5G technology continues to evolve, we can expect even faster speeds and lower latency, making it possible for even more applications and services to be used wirelessly.

This article has been contributed by Kunal Gupta, advocate at Delhi High Court. The views are personal, if any.

End Notes

^[1]https://www.financialexpress.com/industry/adani-group-may-spend-rs-2800-crore-on-purchase-of-5g-spectrum/2589347/

^[2] Section B 1.6 of National Frequency Allocation Policy, 2018

^[3]https://dot.gov.in/sites/default/files/NFAP%202018.pdf?download=1#:~:text=1.1%20The%20National%20Frequency%20Allocation,security%20communications%2C%20disaster%20relief%20and

^[4] Clause 2.4 of the Notice Inviting Applications – June 2022, [https://dot.gov.in/sites/default/files/NIA_Version_Dated_15_06_2022.pdf]

^[5] https://www2.deloitte.com/us/en/insights/industry/technology/global-5g-transformation.html

^[6]https://www.business-standard.com/article/current-affairs/5g-deployment-to-begin-in-aug-sept-in-20-25-cities-by-year-end-vaishnaw-122061800524_1.html

[7] https://www.ericsson.com/en/press-releases/2022/7/ericsson-qualcomm-and-thales-to-take-5g-into-space