Daily Management Review

India Is Expected To Have A Dull Bidding Session For Its $11.5 Billion Spectrum Auction


India Is Expected To Have A Dull Bidding Session For Its $11.5 Billion Spectrum Auction
India announced in a statement that it has put telecom spectrum up for auction on Tuesday, valued at around 962.38 billion rupees ($11.53 billion), despite experts' predictions that participants would be indolent as they shore up their current spectrum.
This auction is for a total of 10 GHz of radiowaves, which span from 800 MHz to 26 GHz.
Spectrum auctions provide the Indian government with a significant portion of its income by granting telecom firms the licence to use certain frequencies for a certain amount of time.
Telecom companies Vodafone Idea (VI), Bharti Airtel, and Reliance Industries' Jio Infocomm collectively won $19 billion worth of 5G spectrum in the previous auction in August 2022, expanding their capacity in the second-largest smartphone market globally.
Because telecom companies have purchased enough spectrum to cover the majority of their needs in the last auction, there is less spectrum up for sale this year than there was last year, which is also probably a sign that they won't be competing for larger blocks.
Analysts at Antique Stock Broking wrote in a report, "We do not expect any player to bid aggressively at the auction. Bidding is unlikely to be a spirited exercise."
Antique anticipates that Bharti would make a bid for a portion of the 38.2 billion rupees in airwaves where its licence is about to expire, while Jio—which does not have any spectrum up for renewal—will probably make a selective offer.
The memo further said that Indebted VI may only bid on spectrum that is about to expire or to cover gaps.
In the US, the company has recalled over 11,000 electric pickup trucks.
The local daily The New Indian Express claimed earlier this month, citing, opens new tab, anonymous authorities, that the sale was postponed twice until a new administration was formed.
The two publicly traded telecom companies' shares lost their day's early gains, with VI down 0.17% and Bharti Airtel down 0.3%.