Major carriers Jio, Airtel, and Vi will be able to expand their services in the nation with the aid of the impending spectrum auction.

In order to increase network coverage and quality in the second-largest telecom market in the world, the Indian federal cabinet authorized a plan on Thursday to sell airwaves through auction. According to a statement from India’s Ministry of Communications, the government would sell airwaves valued at 963.2 billion rupees ($11.6 billion) at reserve price. There will be an auction of 10,523.1 megahertz of airwaves spread across eight bands: 800, 900, 1800, 2100, 2300, 2500, 3300 MHz, and 26 GHz. There was no official date provided by the government for the auction.

The Indian federal cabinet approved a plan on Thursday to auction off airwaves in order to improve network coverage and quality in the world’s second-largest telecom industry. India’s Ministry of Communications said in a statement that airwaves worth 963.2 billion rupees ($11.6 billion) would be sold by the government at reserve. 10,523.1 megahertz of airwaves in eight bands—800, 900, 1800, 2100, 2300, 2500, 3300 MHz, and 26 GHz—will be up for auction. The administration did not announce an official date for the sale.

Additionally, it will support the expansion of services in the country with over a billion phone customers for the three main Indian cellular carriers, Reliance Jio Infocomm Ltd., Bharti Airtel Ltd., and Vodafone Idea Ltd. Late in 2022, the local carriers began offering 5G services, which contributed to India’s continued development in data services.

However, the oligopolistic structure of the market limits the power of a single carrier to set prices. No operator may increase rates unless its competitors follow suit, or else it runs the danger of losing customers.

“Spectrum auctions in India are always lapped up,” said Utkarsh Sinha, managing director of boutique investment firm Bexley Advisors.

He clarified that the pressure on profitability can effect the ability and size of the companies’ bids, but that the intense rivalry that most businesses are embroiled in is affecting their margins and can affect their bids for new airwaves.

The Indian government made $19 billion from the most recent auction in 2022, with Reliance Jio emerging as the top bidder, shelling out over $11 billion for airwaves.

Source Link

By Editor

Leave a Reply