The Union cabinet approved the proposal from the Department of Telecommunications (DoT) to refarm or repurpose almost 1100 MHz spectrum across multiple bands, potentially valued at about Rs 5 lakh crore, which can be auctioned off in the coming years. Officials familiar with the situation stated that the spectrum refarming initiative has been conducted to address the needs of telecom operators for their 5G and, subsequently, 6G services.

The cabinet's nod comes after the committee of secretaries (CoS) has approved the refarming initiative. The Union cabinet approved the establishment of a CoS to focus on spectrum refarming last year. The panel consists of different departmental secretaries and high-ranking DoT officials. The CoS chairman was permitted to seek help from outside specialists, if necessary.

The refarming initiative encompasses spectrum over 10 bands from 470 MHz to 6 GHz. The spectrum within these bands, which includes mid-band and a segment of 6 GHz, is presently being used by the ministries of space, defense, information and broadcasting, railways, and housing and urban development.

Mid-band spans from 1000 MHz (1 GHz) to 6000 MHz (6 GHz), with the range of 3500 MHz-6000 MHz most appropriate for 4G and 5G applications.