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The three private telecom operators namely Reliance Jio, Bharti Airtel, and Vodafone Idea are likely to buy spectrum worth Rs 71,000 crore in the upcoming 5G auction which will leave a vast majority of the radiowaves under the mold unsold as stated by research firm IIFL Securities.
The Modi government will auction next month about Rs 4.3 lakh crore worth of airwaves that are capable of offering 5G telecom services, which also include ultra-high-speed internet. According to the report that was released on Wednesday, the government’s nod to allot spectrum directly to the enterprises is going to have a negative outcome on the mega auction.
IIFL further added by stating that while the supply is plentiful but the government has not cut TRAI’s suggested reserve prices despite the declaration of Telcos that it was still high. IIFL has an estimated spectrum outlay of Rs 37,500 crore, Rs 25,000 crore, and Rs 8,500 for Jio, Bharti, and Vi respectively. If all the telecom operators use the option of equal annual installments over the t 20 years, then the government would collect Rs 6,200 earnings in the current financial year. Telcos will wait for further reserve – price cuts and will miss the premium 700MHz band spectrum. Jio and Airtel may strengthen their sub-1GHz holdings by bidding for 850MHz and 900MHz bands individually.
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