Less enthusiasm on the spectrum front
Telecom companies are bidding less enthusiastically in the upcoming spectrum auctions, or that's at least what earnest money deposits would suggest. This is partly on account of the low conversion to 5G networks by subscribers of Reliance Jio and Bharti Airtel. Vodafone Idea, the troubled third operator that has been slower off the blocks in the 5G race, needs to catch up.
Airtel has to top up on spectrum that is lapsing in select telecom circles. Jio can afford to take it easy after having cornered the biggest chunk of airwaves put up for sale in the previous round of auctions in 2022. In the event, Jio still remains the most hungry for spectrum, signalling its interest to buy three times as much as Airtel, and 10 times as much as Vi.
Part of the reason for low interest has to do with the fact that the previous auction had a lot more spectrum on offer than the upcoming round scheduled for June 6.
And it is also a reflection on the financial strength of the bidders. Jio's aggression is based on its rude health, while Airtel is more circumspect, and Vi is not out of the woods despite a government lifeline thrown to the industry. Also, Airtel and Vi had placed an overwhelming part of their bids on spectrum for 5G services in the 2022 auctions at the outset of 5G rollout in the country.
The three companies will bid for a little over half the spectrum on offer next month, with frequencies in some super-efficient bands having been exhausted.
The overall picture emerging from bidding intent is India's telecom companies are under less strain in buying what remains expensive radio frequencies. Their lack of enthusiasm is on account of network rollout and utilisation considerations more than in their ability to pay. This is a
