The Indian telecom landscape is gearing up for another round of 5G spectrum auctions scheduled on May 20, 2024, and industry experts anticipate Bharti Airtel will be the biggest spender with purchases worth $0.5-1.5 billion, with limited participation by Vodafone Idea, which has spectrum renewals in just two circles, and Reliance Jio, which may look to add spectrum in some bands.
Bharti Airtel would also bid in certain circles to increase its holding in the 800MHz/1,800MHz bands and renew spectrum licences in six circles. The share price of Bharti Airtel Ltd opened at ₹1204.55 and touched a day high of ₹1207.00 as of March 12, 2024, at 11:52 AM.
Analysts anticipate Airtel will be the most active participant in the upcoming spectrum auctions. This stems from the company’s need to renew its licence for specific airwaves in several circles. Unlike Reliance Jio, which aggressively acquired spectrum in the 2022 auctions, Airtel might be looking to solidify its network in particular areas.
While estimates vary, analysts suggest Airtel might spend between $0.5 billion and $1.5 billion (approximately ₹16,600 crore) during the auctions. This figure factors in the renewal cost of existing spectrum licences and potential bids for additional airwaves in specific circles.
The government will offer a wide range of spectrum bands, including 800 MHz, 900 MHz, 1800 MHz, and even high-speed 5G bands like 26 GHz and 3300 MHz. This variety caters to different needs, from bolstering basic voice and data services to enabling next-generation 5G applications. A successful auction could bring the government significant revenue, potentially reaching up to $2 billion. This windfall can be used to fund various initiatives, including infrastructure development and social welfare programs.
The spectrum auction is crucial for India’s telecom sector. Acquisition of additional spectrum by operators like Airtel will enhance network capacity, improve call quality, and pave the way for wider 5G adoption. This translates to a better overall experience for mobile phone users in India.
Bharti Airtel Ltd is one of the leading telecommunication services providers, having a rich presence in 18 countries representing India, Sri Lanka, and 14 countries in Africa.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Mar 12, 2024, 1:18 PM IST
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