In a latest updateReliance Jio has approached the department of telecommunications (DoT), seeking approval to use spectrum in the 26 GHz band for offering WiFi services.
Jio Seeking Approval From DoT To Use 5G For WiFi
This move holds a great significance as it could significantly alter the use-case landscape for 5G spectrum.
According to the officials, this request has been made under Clause 2.3 of the Notice Inviting Application (NIA) for the July 2022 spectrum auction.
Basically, the clause mandates that operators must obtain prior approval from DoT to use spectrum assigned for mobile technologies like 5G for any alternative services, including WiFi.
This kind of request must be made at least six months before deploying the spectrum for the new purpose as mentioned in the clause.
The band we are talking about is interestingly the same band in which the Adani Group recently exited by selling its 400 MHz holding to Bharti Airtel, after failing to identify a commercially viable use case.
It appears that this development underscores the evolving nature of spectrum utilisation.
This is applicable especially in bands where the device and application ecosystem is still maturing.
The Jio has formally made the request and the matter is under consideration, said the DoT officials.
A Hybrid Deployment Strategy
Usually, telecom operators use the 5 GHz band for deploying WiFi-based broadband, while the 3,300 MHz and 26 GHz bands are designated for 5G mobile services.
Jio may be aiming to adopt a hybrid deployment strategy by combining the wide coverage of the 5 GHz band with the ultra-high-speed capacity of 26 GHz in dense urban zones, said the officials known to the matter.
They further emphasized that this approach could allow the operator to deliver targeted high-speed broadband services without relying entirely on traditional mobile 5G networks.
Earlier, both Jio and Bharti Airtel made substantial investments in acquiring 5G spectrum during the 2022 auctions.
Jio decided to invest Rs 88,078 crore to acquire 24,740 MHz of spectrum, which included 2,200 MHz in the 3,300 MHz band for Rs 33,740 crore and 22,000 MHz in the 26 GHz band for Rs 6,990 crore.
Similarly, Bharti invested Rs 43,084 crore for 19,867.8 MHz of spectrum, which included 2,200 MHz in the 3,300 MHz band for Rs 31,700 crore and 17,600 MHz in the 26 GHz band for Rs 5,592 crore.
If DoT decides to grant Jio permission to use the 26 GHz band for WiFi services then Bharti is likely to file a similar request, said officials.
So far, 26 GHz is earmarked for 5G globally, but the ecosystem for large-scale mobile deployment in this band is yet to develop with limited handset and equipment support available in most markets.
Both operators had acquired the 26 GHz band not only for future 5G deployments but also for the spectrum usage charge (SUC) benefits it offers, according to the analysts.
They have waived off SUC for all the spectrum after September 2021, but the 26 GHz band holds a unique financial advantage.
It seems that the revenue generated on this band can be isolated from SUC-liable legacy spectrum, hence reducing the overall SUC liability.