According to research firm IIFL Securities, three private telecom operators – Reliance Jio, Bharti Airtel and Vodafone Idea – are expected to buy spectrum worth Rs 71,000 crore in the upcoming auction, leaving most of the radiowaves unsold. The government will next month auction airwaves that are capable of providing fifth generation or 5G telecom services, including ultra-high-speed internet, worth around Rs 4.3 lakh crore.
According to the report released on Wednesday, the government’s in-principle approval to allot spectrum directly to enterprises is going to have adverse consequences for the mega auction. “While the supply is plentiful, the government has not cut the TRAI’s proposed reserve price despite telcos’ claim that these are still high. We see telcos bid for only 4 out of 10 bands. and the spectrum should be sold at the base price. We estimate the spectrum outlay at Rs 37500 crore, Rs 25000 crore and Rs 8500 crore for Jio, Bharti and Vi,” IIFL said.
The research firm further said that if all telecom operators avail the option of equal annual installments over 20 years, the government would receive an income of Rs 6,200 in the current financial year. It said telcos may exempt premium 700 MHz band spectrum as they await further reserve price cuts. Jio and Bharti may consolidate their sub-1 GHz holdings by bidding for the 850 MHz and 900 MHz bands respectively.
“We do not consider any bids in the 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands. Bids for 3.6 GHz are a bit difficult to predict,” it said. The report further noted that telcos may bid for smaller quantities in the 3.6 GHz and 28 GHz bands – which are seen as the dominant radiowaves for 5G technology – as this could lead to major savings in spectrum usage charges. Is.
Watch video: Vivo X80 Pro review: Should you spend Rs 79,999 on this smartphone?
The Department of Telecommunications (DoT) has issued a new order that will enable telecom operators to proportionally reduce spectrum usage charges when they buy new radiowaves in the upcoming 5G auction.
Read all the latest news, breaking news, watch top videos and watch Live TV right here.