Just In
-
-
-
-
Don't Miss
-
T20 World Cup: 'He will definitely be in my list' - Anjum Chopra handpicks 2 wicketkeeper-batters for India squad -
The 2024 Lok Sabha Elections: Tamil Cinema's Tryst With Democracy -
Salman Khan Case: Actor Arrives In 'X' Cr Car At Airport With Tight Security Days After House Firing Incident -
Closing Bell: Market Stages Smart Recovery, Sensex & Nifty Snap 4-Day Losing Streak Led By HDFC Bank -
Tata Motors To Manufacture Jaguar Land Rover Cars In Billion Dollar TN Plant - Report -
Summer Fashion: Your Bollywood Style White Outfits Guide To Keep It Cool And Chic -
Journey From Delhi To Ooty: Top Transport Options And Attractions -
IIIT-Bangalore Introduces PG Diploma In Digital Product Design And Management
Telecom Commission proposal to relax spectrum holding could lead to further consolidation: India Rat
Removing caps on spectrum holding may prop aggressive participation by TSPs in auctions.
According to a new report by research firm India Ratings, Telecom Commission's recent proposal to relax the spectrum holding caps for telecom service providers (TSPs) could lead to further consolidation in the industry and drive aggressive bidding in spectrum auctions. Also, the extension in a time period for the payment of spectrum bought in auctions would ease the cash flow situation for TSPs.
The firm said that small players can now trade/share their excess spectrum to fetch a better value. This would facilitate further consolidation as the players would not have to surrender the excess spectrum. This along with the extension in a time period for spectrum payment could lead to improvement in the financial health of TSPs.
"Our assessment of circle-wide spectrum holding indicates that Vodafone-Idea merged entity (Vodafone Mobile Services Limited, 'IND AA+'/Negative) may not have to liquidate any spectrum holding post the merger, albeit minor tweaking in Gujarat, Maharashtra, and Kerala may be required. Also, this will facilitate Reliance Jio Infocomm Limited ('IND AAA'/Stable) to remain aggressive in spectrum acquisitions," the firm further said.
Furthermore, Ind-Ra believes the removal of spectrum cap would not result in few players cornering excessive spectrum, as the trend in historical spectrum auctions shows that around 41 percent of the total spectrum put on auction remained unsold. This implies that sufficient spectrum is available with the government, in case any licensee wishes to acquire more spectrum.
Removing caps on spectrum holding may prop aggressive participation by TSPs in auctions. Given the sharp rise in data consumption, large Indian TSPs would continue to chase higher spectrum. However, most of the large players have a noticeable presence in most of the spectrum bands, and hence, spectrum auctions would continue to see two to three players.
-
99,999 -
1,29,999 -
69,999 -
41,999 -
64,999 -
99,999 -
29,999 -
63,999 -
39,999 -
1,56,900
-
79,900 -
1,39,900 -
1,29,900 -
65,900 -
1,56,900
-
1,30,990 -
76,990 -
16,499 -
30,700 -
12,999
-
62,425 -
1,15,909 -
93,635 -
75,804 -
9,999 -
11,999 -
3,999 -
2,500 -
3,599 -
8,893
