New Delhi, June 16 (TIWN) The Union Cabinet has approved the telecom department's proposal to conduct an auction through which spectrum will be assigned to the successful bidders for providing 5G services to public and enterprises.

The Cabinet announced various progressive options with regard to the spectrum to be acquired by bidders through the forthcoming spectrum auction for facilitating ease of doing business. For the first time ever, there would be no mandatory requirement to make upfront payment by the successful bidders.

Payments for spectrum can be made in 20 equal annual instalments in advance at the beginning of each year. It is expected to significantly ease cash flow requirements and lower the cost of doing business in the telecom sector. Brokerage house ICICI Securities has prepared a report explaining some of the salient points on the action and what it will mean for the sector.