The upcoming telecom spectrum auction is anticipated to be lackluster, with telecom service providers (TSPs) largely focused on renewing existing licenses rather than making significant new investments. In the previous auction held in 2022, the government garnered ₹1,50,173 crore, with Reliance Jio emerging as the highest bidder, acquiring radio waves worth €88,078 crore. However, industry insiders suggest that the forthcoming auction may not yield substantial revenues for the exchequer.
According to sources familiar with the matter, the Department of Telecommunications (DoT) aims to secure at least half of the proceeds generated from the previous auction. However, analysts predict that the actual revenue could fall well below this target, given the current spectrum holdings of telecom operators.
Many telecom companies already possess sufficient spectrum and may only seek to renew existing licenses where necessary. Both Bharti Airtel (Airtel) and Vodafone-Idea (VIL) are expected to pursue minimal spectrum acquisitions, primarily focusing on strengthening their 5G networks and renewing licenses in specific regions.
For example, Airtel may consider acquiring approximately 25 MHz of spectrum in the 900 and 1,800 MHz bands to bolster its 5G infrastructure. Similarly, VIL might opt for limited spectrum purchases to renew licenses in select circles, such as West Bengal, Uttar Pradesh, Bihar, Jammu & Kashmir, and Odisha, where licenses are due for renewal.
