Spectrum auction gets DCC nod; COAI says telcos will face challenges to raise funds to buy airwaves

New Delhi: India’s largest ever airwaves auction, which could fetch the government over ₹5 lakh crore as telcos bid for 8,300 MHz of 4G and 5G spectrum, is set to take place in March-April 2020 after the Digital Communications Commission (DCC) gave its approval for the spectrum sale on Friday.

Telcos and analysts said the starting price of both frequencies (₹492 crore per unit for 5G and ₹6,568 crore per unit for the 700 MHz band — used for 4G) was too high to attract serious bidding, especially given the financial condition of operators. Loss-making Vodafone Idea and Bharti Airtel are battling a serious financial crisis, facing statutory dues of over ₹53,000 crore and ₹35,500 crore, respectively, which need to be paid by in just over a month.