India starts $11.5 billion spectrum auction with lacklustre bidding expected

From Investing.com: 2024-06-25 02:22:46

India has put up telecom spectrum worth $11.53 billion for auction, with 10 GHz of radiowaves ranging from 800 MHz to 26 GHz available. The government heavily relies on these auctions for revenue, with previous auctions seeing telecom giants like Vodafone Idea, Bharti Airtel, and Jio picking up $19 billion worth of 5G spectrum. This time, analysts expect subdued bidding.

Bharti Airtel may bid for expiring spectrum worth $38.2 billion, while Jio is expected to be more selective, as they do not have any pending spectrum renewals. Debt-laden Vodafone Idea may only bid for expiring or gap-filling spectrum. The auction was delayed twice until after a new government was elected.

Market reaction to the auction announcement saw shares of telecom firms fluctuate, with VI down 0.17% and Bharti Airtel down 0.3%. Analysts predict that bidding may not be aggressive, given that telecom companies may already have enough spectrum from previous auctions to meet their requirements.



Read more at Investing.com: India kicks off $11.5 billion spectrum auction; analysts expect lacklustre bidding By Reuters