Telcos likely to bid for 20-30% of six 4G bands, skip 700 MHz

MUMBAI: Reliance Jio is likely to purchase some of the 800Mhz band spectrum of Reliance Communications (RCom), which it’s utilizing and is arising for renewal within the upcoming bandwidth sale beginning March 1, whereas Bharti Airtel might purchase additional spectrum within the 800 MHz and 900 Mhz bands, however, like Vodafone Idea, not renew most of its expiring airwaves, say analysts.

Overall, telcos are likely to bid for a mixed solely 20-30% of the six 4G bands on provide between 800 MHz and 2500 MHz, that are price round Rs 2 lakh crore at base worth, however largely give the 700 MHz band a miss, given its excessive worth—38% increased than the 800 MHz band on common and 56% increased in three metro circles—say specialists.

They added that the ultimate profitable bids throughout spectrum are likely to be the identical because the reserve costs given the massive spectrum provide and likely restricted demand for expiring airwaves.

The authorities is placing up for sale over 2250 MHz airwaves throughout seven 4G bands price Rs 3.92 lakh at reserve worth, a bulk of which is made of the 700 MHz band in worth phrases.

“We expect Jio to not only renew around 44MHz of its spectrum, which was bought from RCom, but also buy around 55MHz of spectrum currently owned by RCom in the auctions (which it has been using),” Credit Suisse stated in a observe. “This would entail spectrum capex of around Rs 240 billion (Rs 24,000 crore) at reserve prices with upfront payment of around Rs 60 billion if it were to opt for long-term funding.”

It additional expects Jio to buy further spectrum past expiring airwaves as it would look to increase its community capability, having garnered 35% subscriber market share and a a lot increased share of visitors.

Credit Suisse added that Bharti Airtel has 12 MHz and 47 MHz of spectrum expiring throughout 900 and 1800 MHz bands respectively.