Tuesday, 19 October 2021

Telecom Operators in India might stay away from 5g spectrum Auction

Telecom Operators in India might stay away from 5g spectrum Auction

One of the things that have become a culture in the Indian Telecom space is the highly-priced spectrum. The debt-laden telcos are offered at the highest possible price, increasing their network rollout cost, yet they have to provide data at the lowest rates possible to end-users.

Bharti Airtel had already expressed that if the spectrum bands are not priced reasonably for the 5G spectrum auctions,

It would avoid bidding much and use 4G airwaves, and Dynamic Spectrum Sharing (DSS) offers a 5G system in India. The telco has already indicated that how to do it in the Hyderabad location.

Telecom Operators in India might stay away from 5g spectrum Auction 1getty image

Read More: 5G trial network in Mumbai by Airtel and Nokia; Trial to live go soon in Kolkata

Vodafone Idea is not in a position to Purchase a 5G Spectrum.

Vodafone Idea is in no capacity to purchase a 5G spectrum from the auctions if the base price of the airwaves is high. According to an ET Telecom report, the sector regulator might not change the base price of the 5G airwaves in the 3300-3600 MHz band.

The airwaves in this mid-band is very important for the telcos to rollout 5G services, but if they are too highly-priced, it will increase the network rollout costs for the telcos multiple folds.

However, a source related to the matter told the publication that the regulator might consider adding in airwaves in the premium mmWave bands (26 GHz) at a reasonable price to offer economic benefits to the telcos.

It is not suitable for the Indian Telecom space. The sector regulator should consider the situation of the operators. Apart from Reliance Jio, none of the operators is really in a good position. Even though Bharti Airtel showed net profits in its previous year’s results, the telco has a ton of debt on its shoulders and has to incur costs to expand its network.

Vodafone Idea and Bharti Airtel might altogether avoid the highly-priced spectrum. Even the 700 MHz band needs to be priced lower than before.