Reliance Jio has acquired the 700Mhz band in the auction.
The company had made the highest bid of Rs 88,078 crore.
Jio and its users will benefit greatly from the 700Mhz band.
New Delhi. The first 5G auction that started on August 1 in India is over. Over Rs 1.5 lakh crore has been raised from the auction. As expected, Reliance Jio made the highest bid in the auction. The company had made the highest bid of Rs 88,078 crore. It was followed by Airtel, VI (Vodafone Idea), and Adani Enterprises as the highest bidder. During this, the 700 MHz band, which is a sub-GHz band, was the hottest topic of the auction.
Reliance Jio has won this sub-GHz band by being the highest bidder in the auction and this is not good news for other telcos like Bharti Airtel and VI. Some analysts estimate that other telcos like Bharti Airtel may lose 2 to 3 per cent market share due to non-acquisition of this sub-GHz (700 MHz) band.
Only Jio has 700 MHz band
The 700 MHz band is a sub-GHz band (originally under 1GHz), which Reliance Jio acquired with the C-band. Only Jio has 700MHz band for its 5G connectivity in the country. At present, it is not with any other telco. This will establish Reliance’s monopoly in the 5G space in the sub-GHz band.
Other telcos will have to pay more
Now if other telcos are planning to bid for it in the next auction, they may have to pay a lot. Currently other telecom operators also have sub-GHz bands in 800 MHz and 900 MHz, but these have been developed for 4G and 2G connectivity.
Beneficial for both the users and the company
Now, if we consider the benefits in the long run, a sub-GHz band is said to be more profitable for the company as compared to a GHz band. Let us tell you that a GHz band provides fast internet, but its coverage is less. Whereas a sub-GHz band will provide better coverage but its speed will not be very fast. In such a way, it is beneficial for both the company and the users.
Reliance will get an edge
According to analysts, Reliance will benefit immensely from having sub-GHz band in its 5G network, as it can garner 2 to 3 per cent market share. Because a sub-GHz band will provide a better indoor signal. Despite the low coverage, Reliance Jio may see an increase in the market share thanks to the signal coverage. At the same time, the company will offer the 700 MHz band in urban areas like Delhi, Mumbai, Bangalore, Pune, Chennai and Kolkata. Also in some metro cities you can get better and stable coverage at your home or at other dense places.
5G service will reach rural areas
In addition, the 700MHz band will help Jio offer 5G services in rural areas as well. That too at an affordable cost. Unlike other bands, which have faster 5G speeds, but cover a limited area. The sub-GHz band will in this case offer better coverage than 700 MHz and faster speeds in rural areas.
Benefit for customers in rural areas
5G is said to offer download speeds of up to 300 Mbps (according to Qualcomm). This speed is enough. With this, people of rural areas will also get stable internet. Apart from this, Jio does not have to do any other work to offer 5G in this band, so 5G services are likely to be cheaper. This will benefit the customers of rural areas.
Jio will first offer standalone 5G service
When 5G services start this year, they will be 5G non-standalone, which will use the existing 4G infrastructure. However, work on the new infrastructure for standalone 5G services will start soon. Reliance Jio will be able to use 700 MHz of 5G spectrum to provide 5G standalone service in two to three years. It will be quicker than others. This will increase the market share of Jio. Let us tell you that Reliance Jio has acquired a total of 220 MHz 5G in the 700 MHz spectrum. It will be divided into all the major regions of India.
good speed at cheap rates
Jio users can expect better 5G standalone service soon. You can get better network coverage and better indoor 5G network because of the 700 MHz band. Customers can get good speed at affordable rates. Talking about the rates, 5G will not be as expensive as it is said. Its prices can be similar to the existing 4G plans in India.
FIRST PUBLISHED : August 05, 2022, 10:22 IST