Will 5G rollout lead to lower data charges in India?

5G
(Image credit: Future)

After some unexpected delays, the Indian government recently announced that the 5G spectrum auction will be on July 26. The government is to auction a total of 72097.85 MHz of spectrum with 20 years of validity.

The government will auction about Rs 4.3 lakh crore worth of airwaves capable of offering fifth-generation or 5G telecom services, including ultra-high-speed internet, and has also given its nod for setting up of captive 5G networks by technology firms.

The mid and high band spectrum will be utilised by telecom service providers to rollout 5G technology-based services capable of providing speed and capacities which are claimed to be 10 times higher than what is possible through the current 4G services.

Recently, the first 5G call on a trial network using a fully indigenously-developed telecom equipment was made at IIT Madras. The symbolic demo call, made by Union Telecom Minister Ashwini Vaishnaw, was on end-to-end 5G network that has been designed and developed in the country.

5G services: At what cost?

But when will 5G services be available at the consumer end? Electronics and Information Technology (MeitY) Minister Ashwini Vaishnaw is already on record saying that 5G deployment in the country will start from August to September. "I can say with confidence that 5G deployment will start in at least 20-25 cities and towns by year-end," he was quoted as saying.

And will the rollout of 5G services lead to lower data charges? Well, the Minister said that already data rates in India are at about $2, against global average of $25. "We are already the lowest in the world, at least by a factor of 10X...10X we are cheaper than the world, that same trend will be in other areas too," he said. India will continue to set rate benchmarks as new services are rolled out, he added.

The sum and substance of it is that 5G services in themselves wouldn't lead to lower data charges. But the thing is it won't cost too much more, too. India will continue to be among the places where data charges will be affordable. As a consumer, one need not be worried much.

Meanwhile, telecom towers are being set up keeping in mind the new 5G services. Over the next two years, the existing number of towers will more than double, it is said. The country has around 6.8 lakh towers now, and by the end of fiscal year 2024, the number is likely to cross the 15 lakh mark. This will see the density of towers go from 0. 4/1,000 population to 1/1,000 population by the end of March 2024. That is perhaps the hidden price to be paid for the 5G services.

Balakumar K
Senior Editor

Over three decades as a journalist covering current affairs, politics, sports and now technology. Former Editor of News Today, writer of humour columns across publications and a hardcore cricket and cinema enthusiast. He writes about technology trends and suggest movies and shows to watch on OTT platforms.