Spectrum receipts: Low target shows 5G auction unlikely in FY22

The government plans to hold auctions for 4G spectrum in March, the proceeds of which would be accounted for in the next fiscal. This auction is for 4G bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2,300 MHz and 2,500 MHz.

The 4G spectrum auctions were announced by the government late last year, but analysts were expecting that sometime during the latter half of the next fiscal, the government may also hold auctions for the 5G band in 3.5 GHz, but now it seems unlikely.

The quantum of spectrum being put up for auctions in March is worth Rs 3.92 lakh crore at reserve price, which the industry sees as too high. Therefore, participation is expected to be limited to renewing the airwaves which are expiring later this year. Looking at the budget target, it seems the government has accepted this and is looking to garner only around Rs 60,000-70,000 crore from the auctions.