Telecom Diary: Will telcos bid aggressively for 5G spectrum at a high reserve price?

The government has set in motion the much awaited auction process for 5G spectrum at the reserve price suggested by telecom regulator Trai. Telecom players, which were asking for a 90% reduction in reserve prices, have faced another setback on captive private networks issue. Considering all this, will telcos bid aggressively in the upcoming spectrum auction?

Despite high reserve price, analysts expect telcos to still partake in auctions scheduled from July 26 and take up meaningful quantum of spectrum to enable the rollout of 5G services in India. This means there will be limited bidding by telecom players. While Reliance Jio and Bharti Airtel with their good balance sheets may look to buy 5G in all key circles, the struggling Vodafone Idea may have to weigh various options. Though, the reserve price fixed by Trai is 35-40 % lower than the 2018 level.