Telcos unlikely to bid aggressively for 5G spectrum: ICRA

Kolkata: Phone companies are unlikely to bid aggressively for expensive 5G spectrum in the upcoming sale amid elevated debt levels in the sector, coupled with tepid cashflows, absence of relevant use cases and an immature devices ecosystem, rating agency, ICRA said.

“Debt coverage indicators remain weak, and in such a scenario, 5G spectrum purchase at high prices, followed by capex for network rollout would add to challenges of the telecom industry, making a case for telcos to wait for development of the ecosystem before joining the 5G auction,” Ankit Jain, assistant vice president (corporate ratings), ICRA, said in a media statement Tuesday.