The IIFL Securities Research Firm suggests that in the upcoming 5G auction, big telecom giants like Reliance Jio, Bharti Airtel and Vodafone Idea will buy spectrum at a price of about Rs. 71,000 crore.
The Indian Government will be auctioning airwaves worth Rs. 4.3 crore in the next few months. These spectrums will be equipped to deliver seamless 5G telecom services around the country, thus providing super fast internet.
In spite of abundant supply, the government will not reduce the proposed prices by TRAI. The telecom service providers like Reliance Jio, Airtel and Vodafone Idea bid only for 4 bands out of 10 bands and the base prices are maintained when considering selling the spectrum. It is estimated by IIFL that Rs. 37,500 crore will be allocated for Jio, Rs. 25,000 crore for Airtel and Rs. 8,500 crore for Vodafone Idea.
If the annual installments for these spectrums are paid by the telecom companies equally for a span of 20 years, the government shall be receiving about Rs. 6,200 crore in the present financial year.
The premium bandwidth of 700MHz spectrum will not be taken into account by these telecom companies as they will wait for any price cuts in the future. Jio and Airtel may vouch for the bidding of their 850MHz and 900MHz respectively.
Bidding in the 1800MHz, 2100MHz, 2300MHz and 2500MHz bands is still an assumption for the upcoming future. But telecos might bid for minimal quantities in these mega-sized spectrums to save on usage charges. A new form of order will be initiated by The Department of Telecom (DoT) which will allow the telecom companies to save on usage charges by acquiring fresh radio waves in the 5G auction to come.
