Row over AGR dues may cast shadow on 5G spectrum auctions: Experts

The row over adjusted gross revenue (AGR) in the telecom sector may cast a shadow over the proposed spectrum auctions as the firms that are expected to participate in the bidding are yet to gather clarity on the matter. Experts feel that if they made payments towards AGR settlement, the firms would grapple with funds for purchasing airwaves.

Besides buying spectrum for 4G and 5G services, mobile service providers are expected to make capital expenditure towards deployment of those airwaves.

“Deploying 4G and 5G spectra is a capital intensive exercise and no company is in a position to do that.

Vodafone Idea is yet to integrate spectra and Bharti Airtel has been consistently de-leveraging itself. Only Reliance Jio may look at the option of buying spectrum but even it said that the current prices are too high,” said a Mumbai-based analyst.