Teji Mandi Explains: All the buzz on private 5G network

The government has approved holding an auction for the 5G spectrum for 20 years

Teji MandiUpdated: Monday, June 20, 2022, 03:19 PM IST
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India is bracing for a 5G network that will change how we connect. The 5G network will be much faster, reliable and intelligent. Let’s see how!

What’s Happening?

The government has approved holding an auction for the 5G spectrum for 20 years. India will transform into a 5G country by March next year. Now 5G technology is a quantum jump from 4G tech. The power of 5G tech lies in its latency, speed and capability. It can enable machines to interact with each other. Like, your refrigerator can track your eating habits and directly order items (milk, fruits etc.,) that are missing. Your driverless car can pick up the items from the grocery store with the help of 5G tech.

5G can connect and effectively communicate between millions of devices, unlike 4G. Smart factories can be set up by putting 5G in use for Artificial Intelligence (AI), Augmented Reality (AR), automation, and IoT, among others. Robots can be made to do all the heavy lifting in manufacturing industries with the help of 5G tech.

Telco’s In Disagreement

Private 5G networks will allow enterprises to bypass telecom companies. This means a downfall in telcos' profits as enterprises can directly purchase 5G spectrum from the government. Telcos’ are arguing that if enterprises directly buy the spectrum, then no business will be left for them. Hence, the Department of Telecom has sought recommendations from TRAI, after which a final decision will be taken.

Should This Concern You?

Telecom stocks will take a hit if DoT decides to favour private 5G networks. This will directly affect the bottom line of Vodafone Idea and Bharti Airtel. The telecom industry is already reeling with losses, and private 5G networks will add to the pressure.

What Lies Ahead?

5G is the first generation network where machines will talk to machines efficiently. This will boost the tech ecosystem. The coming few months will be action-packed, as many more 5G developments will unfold.

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