5g auction Archives

After a long wait, Prime Minister Narendra Modi officially launched 5G services in India on October 1. Companies involved in the telecom, optic fiber, and network infrastructure segments are gearing up for a pan-India rollout. However, it could take a while for most of us to experience 5G on our phones. In this article, we discuss how 5G would be beneficial for our economy and what we can expect from the 5G revolution.

What are the Benefits of 5G?

The fifth generation of mobile networks won’t just mean ultra-fast internet speeds. It would bring lag-free connectivity, better coverage, and energy efficiency. Internet speeds on 5G could touch 10 gigabits per second (Gbps) at its peak, compared to the 100 megabits per second (Mbps) of 4G. Telecom operators have promised more reliability, massive network capacity, and increased availability of 5G.

5G offers high bandwidth for quick data transfer. You’ll be able to live stream videos in better quality than before. India’s healthcare, education, automotive, defence, and gaming sectors will get a boost with enhanced augmented reality (AR) & virtual reality (VR) applications and experiences. 5G networks would also improve accessibility to mobile banking.

Jio vs Airtel vs Vi: Preparing for 5G Battle!

In the recent 5G spectrum auctions, Reliance Jio emerged as the top bidder with investments of ~₹88,000 crore. It bought 24,740 megahertz (MHz) of bandwidth. The company bought expensive pan-India airwaves to offer better 5G coverage quality and speed. Thus, it has a competitive advantage over rivals. Jio has also promised to offer “the most affordable 5G rates in the world” and roll out services to each corner of India by December 2023.

Second-largest telecom operator Bharti Airtel bought 19,867.8 MHz of airwaves worth ₹43,084 crore. It is relying on mid-band spectrum acquisitions to offer essential 5G services. Airtel has become the first telco to provide 5G networks in India. It will roll out 5G in 8 cities, including Mumbai, Delhi, Bengaluru, and Kolkata.

Cash-strapped Vodafone Idea (Vi) spent ₹18,799 crore to acquire 6,228 MHz of airwaves. Vi has not announced any vital 5G-related developments yet.

All telecom operators are expected to reveal their 5G plans in the coming weeks. Various reports indicate that 5G plans would be priced similarly to 4G plans currently offered in India. Others say it would be at least 10-12% higher than 4G plans in the initial stage.

What are the Key Challenges?

During the initial 5G rollout, telecom companies will not be able to cover the entire length and breadth of India. It will only be available in Tier-1 cities first and gradually expand to Tier-2,3 cities in a couple of years. More transmitters would be needed to cover the same area as current 4G networks.

Another issue is that 5G signals can be blocked by walls, glass, or trees due to their shorter wavelengths. Thus, you may not get good signals inside a building or basements.

The high cost of network infra and spectrum could nudge telcos to levy a premium for 5G services. Price-sensitive Indian consumers may be reluctant to adopt the technology.

Most 5G smartphones available today tend to consume more battery as it keeps switching between 4G and 5G. Top mobile brands will need to invest in new battery technologies.

The Way Ahead

Over the past year, smartphone brands have advanced swiftly and launched a wide range of 5G smartphones. But if you’re buying a 5G phone now, you may be paying a premium for a feature that you can’t use for at least a year. Moreover, entities involved in the 5G rollout would have to tackle issues such as limited signal range and cybersecurity concerns.

The launch of 5G will pave the way for new economic opportunities and benefits for Indian societies. It will support innovations and transform our country into a more digitally empowered and knowledgeable economy. As per reports, the cumulative economic impact of 5G on India is estimated to reach a whopping $450 billion by 2035, provided that we have a smooth rollout.

In an early edition, we discussed how we can profit from this new revolution in the world of networking. You can read it here!

Are you excited for the arrival of 5G in India? Let us know in the comments section of the marketfeed app!

1. Dollar Rises as Stocks, U.S. Futures Retreat

After a buying frenzy swept across global markets last week, investors are starting Monday in a cautious mood. The dollar climbed against all its major peers, with demand supported by elevated US bond yields. European stocks pulled back from a 10-month high and S&P 500 futures dipped. Weighing on the minds of investors are worries that equities are running too hot and valuations are stretched at a time when major parts of the world are grappling with the worst of the pandemic.

Futures on the S&P 500 Index decreased 0.9% as of early morning New York time.

The Stoxx Europe 600 Index fell 0.2%.

The MSCI Asia Pacific Index declined 0.2%.

The MSCI Emerging Market Index increased 0.2%.

2. Democrats Eye Fast Trump Impeachment Days Before Biden Sworn In

House Speaker Nancy Pelosi is readying Democrats for a lightning-fast second impeachment of President Donald Trump this week that risks consuming Congress in a bitter political fight just as President-elect Joe Biden’s administration is attempting to get off the ground. With a groundswell of anger among Democrats over the storming of the Capitol on Jan. 6 by a mob encouraged by Trump, Pelosi said Sunday night the House would take up a resolution to impeach Trump for the second time in less than two years unless Vice President Mike Pence and the cabinet invoke the 25th Amendment this week to remove Trump from office.

3. Wall Street Cuts Campaign Spending to Condemn U.S. Politicians

Wall Street will use the power of its campaign-giving to broadly condemn U.S. politicians, including those whose attempt to overturn the November presidential election spurred last week’s attack on the Capitol. Goldman Sachs Group will probably curtail donations to leaders who tried to block the election result, and Morgan Stanley similarly singled out members of Congress who withheld their votes to certify President-elect Joe Biden’s win in November, pausing its contributions to them. JPMorgan Chase & Co., the largest U.S. bank by assets, said it’s planning a six-month suspension to both Republicans and Democrats, and Citigroup said it intends to temporarily stop all political contributions this quarter.

4. Tech Under Attack After Parler Goes Dark, Twitter Drops

Tech firms tried to contain a mounting backlash against their social media sites, with shares of Twitter and Facebook falling in early trading and rival platform Parler forced offline by Amazon.com. Twitter fell 7.8% in pre-market trading in New York after it banned President Donald Trump permanently for risking incitement to violence, citing posts referring to riots in the U.S. capital last week, removing one of Twitter’s biggest accounts. Facebook’s shares were down 2%. Free-speech-centric network Parler was taken offline early on Monday after Amazon Web Services shut down access to its servers, leaving it without an online home. Both Google and Apple kicked Parler from their stores, making it almost impossible to download the app.

5. Bitcoin’s Biggest Plunge Since March Shakes Faith in Crypto Boom

A steep selloff in Bitcoin is fueling concern that the cryptocurrency bubble may be about to burst. Bitcoin slid as much as 21% over Sunday and Monday in the biggest two-day slide since March. While the digital token recovered some of the losses during the European session, it was still down for the day. “It’s to be determined whether this is the start of a larger correction, but we have now seen this parabola break so it might just be,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. Bitcoin has more than quadrupled in the past year, evoking memories of the 2017 mania that first made cryptocurrencies a household name before prices collapsed just as quickly. Prices almost reached $42,000 on Jan. 8 with retail traders and Wall Street investors clamouring for a piece of the action.

6. China Stocks Slump Most in Three Weeks on Valuation Concerns

Chinese stocks fell the most in three weeks, led by consumer shares and commodity producers, amid concern valuations for the most popular stocks were stretched and as metal prices slumped. The CSI 300 Index dropped as much 1.5% before paring losses to 1% at the close. Gauges tracking energy, consumer staples and materials producers slumped more than 2%. Mainland investors appeared to flock to Hong Kong equities instead, buying a record HK$19.5 billion ($2.5 billion) of the city’s shares through trading links Monday. Jitters are appearing in China’s $11 trillion equity market after the gauge surpassed its bubble peak in 2015.

7. Hedge Funds Head for Cover as Dollar Rebound Gathers Pace

The dollar rebound is picking up pace, with signs that speculative traders are busy covering short positions after U.S. Treasury yields surged. Traders are reporting strong demand from leveraged funds for the dollar on Monday, with the greenback leading major currency advances. That adds to data released from the Commodity Futures Trading Commission that showed them trimming long positions on major currencies including the euro and the pound. “The dollar is so extremely oversold, over-hated, and over-shorted that it all but has to rally for a while at some point soon,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The dollar is getting very ripe for a tradable bounce — one that will last at least several weeks and maybe even a couple of months.”

8. Brexit Drags U.K. Below U.S. in Global Business Location Ranking

Britain is significantly less attractive as an international business location because of Brexit but remains well positioned compared with other major economies. The U.K. slipped behind the U.S. to second place in the latest rankings, though it remains ahead of the rest of its Group of Seven partners. Canada was fourth, followed by Germany in 17th, France in 18th, Japan in 20th and Italy in 21st and final spot. “Brexit has been a major liability for the U.K.,” the authors of the study wrote. “Future British governments have a long road ahead if they wish to regain their economic dynamism, as promised by Brexit advocates.”

9. T-Mobile to Borrow Up to $2 Billion in Heated Spectrum Bid

T-Mobile US Inc. is borrowing as much as $2 billion as the mobile carrier engages in an expensive battle to buy more spectrum assets. The company will issue the debt in three parts, maturing as late as 2031. Communications providers are amping up their bids in a 5G airwaves auction in the U.S., which may see T-Mobile’s peers such as Verizon and AT&T tap the debt markets as well. The auction — which still has several more rounds of bidding ahead — has now surged past $80 billion, well above analysts’ estimates of $47 billion. The frenzy underscores how crucial these mid-band frequencies are to companies trying to seize global leadership in emerging 5G technology. The airwaves are expected to drive a yearslong surge of profits when deployed for next-generation mobile devices, autonomous vehicles, health-care equipment and manufacturing facilities.

10. Staples Seeks to Buy Office Depot Parent in $2.1 Billion Deal

There could be consolidation ahead in the office-products space, with Staples outlining Monday a proposal to acquire the parent company of Office Depot in a deal that would value the target company at $2.1 billion. A deal would bring together two of the biggest names in office supplies at a time when brick-and-mortar retailers are struggling to cope with broad economic shutdowns in the pandemic. Staples had previously tried to buy Office Depot, but the $6.3 billion acquisition was called off in 2016 amid antitrust scrutiny.