Budget 2022: Auctions By March, Rollout By FY23 Govt lays ground for 5G rollout; pushes rural broadband deadline to 2025

What is the News?

In the Budget 2022, the Union Finance Minister has announced several initiatives in the Telecom Sector.

What are the initiatives announced by the Finance Minister in the Telecom Sector?

Firstly, the Government ​​will hold an auction for the 5G spectrum in 2022, but the implementation of services will happen in 2022-2023. 

Secondly, to enable affordable broadband and mobile service proliferation in rural and remote areas, 5% of annual collections under the Universal Service Obligation Fund (USOF) would be allocated. This would promote R&D and the commercialisation of technologies.

Thirdly, a Scheme for design-led manufacturing will be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive(PLI) Scheme.

Fourthly, to bring access to e-services, communication facilities, and digital resources in all villages in par with the access of the same in urban areas, the contracts for laying optical fibre in all villages, including remote areas will be awarded under the Bharatnet project through public-private partnership(PPP) mode in 2022-23. The Completion of laying optical fibre is expected in 2025.

Source: This post is based on the following articles:

–  “Budget 2022: Auctions By March, Rollout By FY23 Govt lays ground for 5G rollout; pushes rural broadband deadline to 2025” published in Indian Express on 2nd Feb 2022.

– “​​5G Services to be rolled out IN FY23” published in The Hindu on 2nd Feb 2022.