In today’s Finshots, we tell you what 6 GHz is and why India’s facing a bit of a dilemma over it.
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The Story
Imagine you’re at a crowded concert auditorium, trying to leave, but everyone is blocking the way. Suddenly, a secret door opens just for you, and you can walk out without any pushing or shoving. That’s what the 6 Gigahertz or 6GHz band is for the internet. A new, open path that makes everything faster and less congested, even when lots of people are online.
Now, the 6GHz band is a new frequency range. Networks need something to run on, and that’s where frequency bands come in. For instance, 5G runs on the 3.5GHz frequency band, which acts as a highway that carries data for 5G connections. The 6GHz band, however, is a wider highway that can handle more traffic. Its higher frequencies help improve internet speed and reliability.
Because it’s such a valuable piece of property, everyone from telecom companies to tech giants, wants a share of it. And that has sparked a big debate in India right now.
You see, the 6GHz band needs to be allocated, and it’s up to the government and national authorities to decide how it’ll be used.1 There are two ways this can go — licensed or unlicensed use. If it’s licensed, companies have to pay for exclusive rights to use the band, which gives them full control over it. But if it’s unlicensed, anyone can use it without shelling out money. That makes it more accessible, but it could also get messy with interference since everyone’s sharing the same space.
Right now, the 6GHz band in India is mostly with the Indian Space Research Organization (ISRO) for satellite use.2 But a big chunk of it is still unallocated. And the debate is whether some of it should go unlicensed or if the whole thing should stay licensed, just like the bands that came before it.
First up, we have telecom companies who want exclusive rights to the 6GHz band. They say it’s needed to boost 5G and prepare for 6G. More spectrum also means more revenue for telcos and the government. For example, the government made a whopping ₹1.5 lakh crores from spectrum auctions in 2022. Auctioning the 6GHz band could bring in even more money.
Now, this might seem like a win-win, but it’s not that simple.
Because on the other side of this debate we have tech companies like Google, Meta and Amazon, represented by the Broadband India Forum (BIF) who want a part of the 6GHz band to be de-licensed.2
Their case?
Unlicensed access will boost innovation and make internet access more affordable, especially in rural areas. Imagine a school in a remote village getting fast internet because of Wi-Fi using the 6GHz band. This could be a game changer for education. And estimates from a DSA (Dynamic Spectrum Alliance) study are proof of the pudding. They suggest that fully de-licensing the band could add $4 trillion to India’s economy by 2034, driving not just internet speed and innovation but also GDP growth.3
And then we have chipmakers who are also rooting for unlicensed use, because it opens up more business opportunities like adding Wi-Fi to devices and expanding Wi-Fi networks. ISRO too is worried about interference with its satellite operations if the band is used for mobile networks.1 Which begs the question — Why not split the difference?
Part of the band could be licensed for telecoms, while the rest could be left unlicensed for public use.
Well, it’s not as straightforward as it seems, because the 6GHz spectrum is limited. And if too much is de-licensed, it could hurt 5G growth. Telcos would struggle without enough spectrum and would need to add more small cells or infrastructure used to improve mobile networks. That’s expensive and difficult in crowded cities. On the flip side, if most of the band goes to telcos, it could hurt competition and slow down innovation.
Plus, more crowding can lead to higher carbon emissions. For context, Mumbai’s energy use could triple if there’s too much pressure on the spectrum.
The other option of de-licensing the entire band isn’t without its risks either. It could cause interference, where too many users sharing the same frequency lead to network congestion and slower service.
So what’s the way out, you ask?
Well, different countries have taken different routes. The US for instance, has fully de-licensed the 6GHz band, allowing widespread use of Wi-Fi 6E (Wi-Fi that allows devices to operate on the 6GHz band). This move has also caught the attention of other countries, like Brazil and Saudi Arabia. China has fully licensed its 6GHz band for mobile services, focusing on 5G and 6G.
And now, India’s decision could be crucial. Because the 6GHz band is important for industries like manufacturing, communication and technology. Studies even suggest that if properly used, the 6GHz band could add $285 billion to the Asia Pacific region’s GDP by 2030, with 85% of that benefit in the South Asian market coming to India.4
So, maybe a balanced approach could be the best way forward — delicense part of the band to boost Wi-Fi and support digital inclusion, while reserving some for telecoms to use for 5G and 6G in the future?
A GSMA study on 6GHz for India though, does not agree.4 It says that without the 6GHz band, Indian mobile operators could find it hard to expand their services. 5G networks will be slower, consumers will end up paying more and industries that rely on 5G tech will struggle to stay competitive. The tax revenue that the Indian government will rake in from 5G will be lower too.
Not just that. It also points out that fully licensing the 6GHz band would bring the most benefits, especially with India’s current broadband setup. And warns that de-licensing it could cause a lot of problems, like higher costs for strengthening networks, higher energy use and a big increase in carbon emissions, thanks to nearly 3 times more power consumption.
So yeah, this whole back and forth over costs and benefits is probably why the government hasn’t made its final call yet. Last year, the Telecom Regulatory Authority of India (TRAI) put out a white paper, suggesting three options ―licensing, de-licensing or a mix of both.1
But whatever they decide, it must happen soon. If they keep dragging their feet, India could miss out while other countries race ahead. Because, let’s be real, whether you're streaming your favorite show, hopping on a video call or working on the next big thing, faster and more reliable internet is something we can all agree on, right?
Until next time...
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Story Sources: TRAI [1], Economic Times [2], The Fast Mode [3], GSMA [4]
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