Shock in Kabul as US kills al-Qaeda leader
Sherpur, or the town of thieves, was the name given to it...
Asia’s richest men battle to dominate 5G in India
After seven days, India’s largest auction for 5G airwaves concluded, potentially setting the stage for a battle for supremacy over India’s digital future between two of Asia’s wealthiest men, Gautam Adani and Mukesh Ambani.
The auction featured 72 gigahertz of spectrum for sale. According to India’s telecoms minister, Ashwini Vaishnaw, 71% of what was on offer was sold.
The government received bids totaling approximately $19 billion from the three existing players – Mr Ambani’s Reliance-Jio, Vodafone Idea, and Bharti Airtel – as well as a fourth, new entrant, Adani Data Networks.
According to CRISIL Research, total bids had more than doubled since the last auction in March 2021, exceeding expectations.
While R-Jio was the highest bidder, spending $11 billion on spectrum, the Adani group spent only about $26 million. Bharti Airtel and Vodafone Idea submitted the final bids.
While Bharti Airtel and R-Jio allegedly bid for pan-India airwaves, cash-strapped Vodafone Idea reportedly spent only on priority sectors.
“Jio is fully prepared for 5G rollout in the shortest time possible due to its nationwide fibre presence… and strong global partnerships across the technology ecosystem,” R-Jio said in a statement.
The Adani Group bid on private spectrum that would be accessible in specific areas such as ports or airports – a sector in which it has already made significant investments.
Mr Ambani’s R-Jio is now a household name in India’s internet market, and Mr Adani is a surprising bidder – he controls a sprawling business spanning ports, airports, and power, and recently displaced Bill Gates to become the world’s fourth-richest person, with a net worth of more than $112 billion.
“We believe that if the Adani Group does end up purchasing spectrum in the upcoming auction, it could potentially increase competition… as well as opening the door for the Adani Group to expand into consumer mobile services over time,” Goldman Sachs wrote in a note.
The move will frighten Vodafone Idea and Bharti Airtel, which are still reeling from the tariff wars sparked by R-disruptive Jio’s 2016 entry, which slashed prices. They are now facing increased competition from yet another wealthy billionaire.
It’s an unexpected confrontation for Mr Ambani with a rival who has previously avoided what is perceived to be his territory.
The launch of 5G in India is expected to usher in a new era of high-speed internet, allowing for video downloads in seconds and the use of advanced connected devices via cloud computing technologies.
Thirteen Indian cities will soon have access to 5G services.
With faster speeds available, Indian telecom companies are expected to benefit from charging higher prices for 5G – they have so far avoided charging more for 4G plans compared to 2G or 3G plans.
According to a Nomura note, 5G tariff plans will likely result in higher revenues for telecom companies.
However, given the possibility of higher prices and the fact that only about 7% of India’s total smartphone base is 5G-enabled, India will move slowly to 5G.
However, record auction proceeds – the highest in the previous seven rounds since 2010 – will help shore up the government’s finances at a time when India’s fiscal deficit – the difference between revenues and expenditure – is expected to reach 6.4 percent.
According to analysts, India’s Department of Telecommunications will receive $1.6 billion upfront over the next 20 years.
The government expects to complete airwave allocation by August and to begin rolling out 5G services in early October of this year.
“We should have a good rollout of 5G in the country within a year or so,” Mr Vaishnaw said.
Catch all the International News, World News, Breaking News Event and Latest News Updates on The BOL News
Download The BOL News App to get the Daily News Update & Follow us on Google News.