Mega spectrum auction likely to net only Rs 40,000 crore: Analysts

KOLKATA: The government is expected to sell well below 10% of the spectrum — worth Rs 5.22 lakh crore at base price — it would put on auction in March-April next year, netting only about Rs 40,000 crore, say analysts.
The steep starting price of pure 5G spectrum and 700 MHz airwaves, which is usable for both 4G and 5G services, is likely to lead to tepid bidding by financially stressed telcos, they say.
“Given the high reserve prices, acute balance sheet stress of older carriers and absence of an immediate 5G business case, the government is unlikely to see any meaningful take up of pure 5G and 700 MHz airwaves,” Rajiv Sharma, research head at SBICap Securities, told ET. “So, it won’t raise even 10% of the targeted sales proceeds in the upcoming auction.”
On Friday, Digital Communications Commission (DCC), the highest decision-making body in the telecom department, cleared the country’s largest-ever spectrum auction likely around March-April 2020.