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Telcos may spend Rs 1 lakh crore on spectrum in next auction

Operators do not face business continuity issues this time, says credit rating agency Crisil

Policy Pulse
Publish Date: Jul 5 2016 10:58AM | Updated Date: Jul 5 2016 10:58AM

Telcos may spend Rs 1 lakh crore on spectrum in next auction

Telecom companies in the country may splurge Rs 1 lakh crore on buying spectrum across bands in the next auction, which is likely  to be held in September, credit rating agency Crisil has said. 

 
It added that top three carriers - Bharti Airtel, Vodafone India and Idea Cellular may for account for nearly 55-60 percent of the total spend to defend their turfs ahead of Reliance Jio Infocomm's entry.
 
According to Crisil Research director Ajay Srinivasan, unlike earlier auctions, operators do not face business continuity issues this time.
 
He also expressed hope of reasonably healthy participation as incumbents will ramp up their 3G and 4G spectrum holdings before Reliance Jio's entry
 
Union cabinet had in June gave green signal to what will be India's biggest spectrum sale, in which Centre plans to auction over 2200 MHz of airwaves across 4G bands (700 MHz, 800 MHz, 1800 MHz, 2300 MHz and 2500 MHz bands) and the 2100 MHz 3G band.
 
However, Srinivasan said that he expects bidding for t4G airwaves in the 700 MHz band to be "extremely selective" as he expects telecom companies to choose for "less pricey" airwaves in the 1800 MHz band to plug 4G gaps.