In a move that could significantly alter the use-case landscape for 5G spectrum, Reliance Jio has approached the department of telecommunications (DoT), seeking approval to use spectrum in the 26 GHz band for offering WiFi services.
Officials said that this request has been made under Clause 2.3 of the Notice Inviting Application (NIA) for the July 2022 spectrum auction, which mandates that operators must obtain prior approval from DoT to use spectrum assigned for mobile technologies like 5G for any alternative services, including WiFi. As per the clause, such a request must be made at least six months before deploying the spectrum for the new purpose.
Interestingly, this is 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. The development underscores the evolving nature of spectrum utilisation, especially in bands where the device and application ecosystem is still maturing.
The DoT officials said that Jio has formally made the request and the matter is under consideration. Jio did not respond to queries on the issue till the time of going to the press.
Currently, telecom operators primarily 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. Officials familiar with the matter said 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. This approach could allow the operator to deliver targeted high-speed broadband services without relying entirely on traditional mobile 5G networks.
During the 2022 auctions, both Jio and Bharti Airtel made substantial investments in acquiring 5G spectrum. Jio spent 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. Bharti, on the other hand, spent 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.
Officials said if DoT grants Jio permission to use the 26 GHz band for WiFi services, Bharti is likely to file a similar request. Despite 26 GHz being earmarked for 5G globally, the ecosystem for large-scale mobile deployment in this band is yet to develop, with limited handset and equipment support available in most markets.
Analysts said 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. Although SUC has been waived for all spectrum acquired after September 2021, the 26 GHz band holds a unique financial advantage. Revenue generated on this band can be isolated from SUC-liable legacy spectrum, thereby reducing the overall SUC liability. In contrast, the 3,300 MHz band, while also SUC-free for post-2021 acquisition, is typically used in integrated networks where adjusted gross revenue (AGR) is blended with older holdings, limiting the scope for SUC optimisation.
Analysts also pointed out that a nod from DoT could put the Cellular Operators Association of India (COAI) in a tight spot. The industry body has recently opposed the DoT’s move to delicense the lower 6 GHz band for WiFi, arguing it would harm mobile network quality. If a licensed mobile band like 26 GHz is repurposed for WiFi with official approval, the industry’s opposition to unlicensed spectrum for similar use may lose traction.