Telcos likely to raise tariffs after spectrum auction

Telecom tariffs are likely to go up after the operators splashed out Rs 1.5 lakh crore in the spectrum auction, including 5G airwaves.

Analysts said the telcos could go in for a differentiated tariff for 4G and 5G and also increase charges on their other plans to improve their average revenue per user (ARPU) by getting rid of low-paying, inactive subscribers.

Nomura said as there was no spectrum usage charge (SUC) for the 5G spectrum, it expects an annual expenditure of Rs 7,500 crore on spectrum which will require a modest 4 per cent hike in tariff. The operators may also charge a 30 per cent premium on the 5G package vis-a-vis their 4G tariffs.