The Cabinet on Wednesday cleared a proposal of the Department of Telecommunications to hold a 5G spectrum auction for telecom services. The auction will be held by the end of July, the government said in a statement.

A total of 72097.85 MHz of spectrum with a validity period of 20 years will be put to auction. The auction will be held for spectrum in various Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) frequency bands.

“Spectrum is an integral and necessary part of the entire 5G eco-system,” the government said. “The upcoming 5G services have the potential to create new-age businesses, generate additional revenue for enterprises and provide employment arising from the deployment of innovative use-cases and technologies.”

The government added that it expects telecom service providers would utilise Mid and High band spectrums to roll out 5G-based technology services in the country, which would be capable of providing a speed about 10 times higher than the current 4G services.

In Wednesday’s announcement, the government also announced that it was not mandatory for bidders in the auction to make full payment.

“Payments for spectrum can be made in 20 equal annual instalments to be paid in advance at the beginning of each year,” it said. “This is expected to significantly ease cash flow requirements and lower the cost of doing business in this sector.”