Fitch Ratings in its latest telecom outlook said, India's 5G spectrum sale could be delayed if the government focuses on a 4G auction in the year 2021.
The rating agency on Monday released its 2021 Outlook: Asia-Pacific Telecoms, under which, Fitch stated that the 5G spectrum auctions could be delayed if the Indian government prioritizes 4G auctions next year to allow telecom companies to renew spectrum in 800/900 Mhz bands in certain states.
Further, in the report, Fitch expects limited participation from telcos like Bharti and Vodafone Idea (Vi) in the 5G auction due to high reserve prices set in the country by the regulator and limited usage cases.
On the Asian telecom market front, Fitch expects a gradual EBITDA recovery, stable leverage and for data monetisation to take centre stage post the coronavirus pandemic in 2021. Telcos are likely to bolster cash generation ahead of the 5G investment upcycle, supporting stable competition in most markets.
Fitch expects limited rating changes, with 14 of our 16 public Foreign-Currency Issuer Default Ratings on Stable Outlook. The Negative Outlooks on Telekom Malaysia Berhad (TM, A-) and Bharti Airtel Limited (BBB-) are sovereign-driven.
Fitch in another report said, other issues for investors to watch include the sustainability of tariff hikes in India's wireless services.
On Tuesday,
Bharti Airtel and
Vodafone Idea stock plunged by nearly 1% each on Sensex.