Spectrum Auction Might Increase Debt Of Telecom Industry: ICRA

|

The Department Of Telecommunication is likely to hold spectrum auction in October this year. It is expected to get Rs. 3 lakh crore from the auction. However, there will be no auction of 3,300 and 3,600 MHz spectrum band due to its high price. This means that the government will only sell 4G airwaves.

Spectrum Auction Might Increase Debt Of Telecom Industry: ICRA

 

But, a new report by research firm ICRA states that it will increase the debt of the telecom industry. It said that the average revenue per user and spectrum auction would increase debt to Rs. 4,60,000 crore, despite the fact that the telecom operators have raised tariffs. The research firm also believes that there the government will only get Rs. 55,000 - 60,000 crore.

"The newer bands, which are expected to be used for 5G - 700 MHz and 3300-3600 MHz bands contribute more than 60 percent of the total value of spectrum to be put to auctions. While 3300-2600 MHz band is likely to be kept out of these auctions," Ankit Jain, Assistant Vice President, Corporate Ratings, ICRA said. Adding to that, "We foresee minimal participation in the 700 MHz band and expect relatively better participation in the 800 MHz and 1800 MHz bands, that beholds significant expiries for incumbents in 2021; and thus the telcos will acquire for a continuation of 4G services."

Meanwhile, the DOT has relaxed norms for license fees, and now operators can pay in 16 installments as against eight installments earlier.

No 5G (3,300- 3,600 Mhz Bands) Auction This Year

The government said no to 5G airwaves in 2020 as operators are not interested in buying the airwaves. However, the operators are keen to buy 4G airwaves as there is a need for additional spectrum.

In addition, the operators want to buy additional spectrum 4G airwaves in the coming auction as sources close to the development said. The demand for data has been increased by many folds. Apart from that, it seems that the upcoming auction will help operators to renew their expired license in several bands.

Most Read Articles
Best Mobiles in India

Read More About: airtel reliance jio vodafone idea

Best Phones

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Yes No
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more
X