Improving the odds for 5G

Fixing the approach for networks and services is necessary for getting to 5G

- SHYAM PONAPPA

Towards the end of 2021, the government acted admirably in the public interest, making difficult and courageous decisions to partially resolve legacy problems in telecom, such as redefining adjusted gross revenues and withdrawing retrospective tax demands. This gave rise to expectations that reforms would be less constraining, and more beneficial for the public interest. The announcement in June of 5G spectrum auctions and limited E-Band backhaul allocation, alas, falls far short. Why the disappointment, and how might the situation be improved? Two areas need changes: Backhaul, and access spectrum. One aim is to remove self-imposed constraints. Another is to replicate the successful pattern of other sectors, where enterprises build their business, earn revenues, and then pay taxes. For some reason, this does not apply to communications despite it being a critical essential service.

Backhaul-E-band

A fundamental problem is the limited backhaul spectrum. Two bands of 250 MHz of E-band spectrum (70-80 GHz) are to be assigned to each telco that wins 5G spectrum. This is puzzling, as there are 10 GHz available (20 times 500 MHz). If press reports that this is temporary are correct because these frequencies are to be auctioned- and telcos must agree to pay the auction price at that time-the situation is disastrous, because 5G needs large backhaul capacity.

In other countries such as the US or the EU, policies are framed so as to enable usage of the full 10 GHz at minimal cost. This provides flexible capacity for much higher throughput, whereas we are creating a self-imposed constraint by restricting capacity. This means that the Organisation for Economic Co-operation and Development countries gain more from increased productivity than a developing country with the same resource. This can be remedied by adopting their regulations as appropriate.