Expect telcos to buy spectrum worth Rs 1 trn-Rs 1.1 trn in 5G auction: Icra

The telecom industry is expected to shell out around Rs 1-1.1 lakh crore on the 5G auction, despite telcos’ reservations over high spectrum prices, Icra said on Wednesday but cautioned that sector debt level is likely to rise with upcoming auctions.

The auction of over 72 GHz of the spectrum is set to commence on July 26, 2022.

According to Icra, given the relaxed payment terms for the auction, the upfront outgo is likely to be around Rs 10,000 crore for the industry.

It said industry ARPU (Average Revenue Per User) is expected to increase to Rs 170 by the end of FY2023, driven by tariff hikes and consistent up-gradation of subscribers.