Reliance Jio Needs Rs. 28,000 Crore To Renew Spectrum In Coming Auction

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Reliance Jio, which is serving more than 400 million users, is likely to buy more spectrum in the coming auction. The operator is likely to spend Rs. 28,000 crores in the auction in March as per a new report by research firm Motilal Oswal.

 
Reliance Jio Needs Rs. 28,000 Crore To Renew Spectrum

The development comes soon after the Union Cabinet approved the proposal to auction 700 MHz, 800 MHz, 900 MHz, 1800 MHz, and 2100 MHz in March 2021. Meanwhile, analysts at the brokerage firm Credit Suisse said that Vodafone-Idea might not go for auction, despite the fact, its 900 MHz and 1800 MHz bands are expiring.

The brokerage firm beliefs Airtel's participation will be limited as it has increased its spectrum holding via merger and acquisition in the last three years. "In fact, we would not be surprised if Airtel chooses to selectively let go of some expiring spectrum where it already has adequate holding," analysts said in a report.

Adding that, "Additionally, unlike the spectrum auctions in the past, we do not expect bidding to be aggressive, given, a limited number of participants and adequate supply of spectrum from the government."

Motilal Oswal also said that Reliance Jio needs Rs. 28,000 crores to renew the spectrum, whereas Airtel needs Rs. 13, 000 crore, and India's third-largest telecom player Vodafone-Idea requires additional Rs. 8,300 crores for expiring spectrum. Furthermore, the report said that Reliance Jio has acquired an 800 MHz band in 19 circles.

Similarly, Airtel bought 57 MHz in the 1800 MHz airwaves, while Vodafone-Idea has 37.8 MHz and 6.2 MHz in 900 MHz and 1800 MHz bands, respectively. It is worth mentioning that, the Department of Telecommunication is also planning to sell 700 MHz airwaves. The 700 MHz band is expected to garner Rs. 2.3 lakh crore according to Telecom Regulatory Authority of India suggestions.

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