Spectrum auctions in 2-3 months, likely to be muted: DoT Secy

BARCELONA: The upcoming spectrum auctions will be conducted in the next two-three months, said secretary of the Department of Telecommunications (DoT), adding that the sale will be primarily for telecom operators to top-up expiring spectrum for their ongoing operations.

Neeraj Mittal added that telcos are not expected to spend big this year on spectrum, especially since they bought a lot in the previous auction. The official is in Barcelona to inaugurate the Bharat Pavilion at the ongoing mobile world congress.

“One should not expect that the government will net Rs 5 lakh crore,” he said, indicating that the government’s target for the upcoming auctions is lower than the Rs 1.5 lakh crore netted in the 5G spectrum auction in 2022.

“That said, nobody can predict a number from where,” he said. “It’s not a question of being subdued. There’s adequate supply of spectrum and if operators want to go aggressive, they can.”

The official, though, remained confident that operators whose spectrum has expired will surely look to top up.

In the upcoming auction, spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz will be offered for sale, the government has said.

However, the sale is likely to be muted as the telcos don’t need more airwaves currently for their 5G needs, industry analysts said. There would be some selective buying by Bharti Airtel and Vodafone Idea, which have to renew their licenses in a few circles. Apart from that, the Adani group may buy some airwaves in lower spectrum bands, they said.

Airtel needs to renew its license in J&K, Odisha, Bihar, UP (East), West Bengal and Assam. Vodafone Idea needs to renew its license in West Bengal and UP West.

As per Jefferies, Airtel and Vodafone Idea merely need to renew airwaves worth around Rs 4,200 crore and Rs 1,950 crore, respectively, while market leader Reliance Jio does not have any spectrum renewal slated for this year.

Mittal also said the DoT is working on setting the general rules around the new Telecommunications Act passed in the parliament in the winter session last year.

“We are working on it. We cannot say anything specific. Rule formation takes a lot of time. There are consultations to be done. It’s not just one rule, but multiple rules,” Mittal said.

“There’s a lot of steps in operationalising the act also,” he added.

(The reporter is in Barcelona to cover the Mobile World Congress at the invitation of Tanla Platforms.)