Spectrum auctions in India likely in second half of 2020: Moody’s


PTI, Jun 28, 2019, 10:08 AM IST

New Delhi: The proposed spectrum auctions in India, which includes radiowaves for 5G technology, are likely to be held only in the second half of 2020 or later, given the stressed balance sheets of telecom operators, Moody’s Investors Service said Thursday.

“Regulators in countries such as India, Indonesia, and Bangladesh are still initiating consultations with operators and are likely to schedule 5G spectrum auctions only in second half of 2020 or later,” Moody’s Investors Service said in a report.

It said that the Indian government has identified the 5G spectrum (3.3-3.6 GHz).

“However, sale of spectrum in 2019 is unlikely, especially given the telcos’ request to the government to restructure their existing spectrum debt in light of their stretched balance sheets,” the report said.

All telecom operators, except Reliance Jio, have been under pressure due to huge debt and decline in margins.

According to Crisil, telecom players in India are reeling under cumulative debt of around Rs 4.3 lakh crore.

The Telecom Regulatory Authority of India (Trai) has recommended auction of about 8,644 MHz of telecom frequencies at an estimated total base price of Rs 4.9 lakh crore, which includes radiowaves for 5G services.

“Even though there are signs of market recovery this year, severe price competition in India and Indonesia is leading to an acceleration in capex plans for companies. Although 5G spectrum allocation timelines are still being discussed in these countries, we expect all companies to participate in these spectrum auctions,” Moody’s said.

Telecom operators in India, Indonesia, and Bangladesh continue to focus on further strengthening and densifying their 4G networks.

The report said that most of the countries in Asia-Pacific region are offering spectrum at low prices to help companies leapfrog into 5G services, and to incentivise operators.

“India seems to be an exception given spectrum pricing is still quite contentious,” the report added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Ullal: Auto-rickshaw accident near Konaje claims driver’s life

Congress victory in bypolls not a clean chit to CM in MUDA case: R Ashoka

IPL 2025 | Got someone who can do captaincy job: Ricky Ponting on Shreyas Iyer

Bad timing: Fraudsters call senior Indore cop during press briefing to pull off ‘digital arrest’

Kangana says MVA lost in Maharashtra because it disrespected women

Ranbir Kapoor says he would love to remake grandfather Raj Kapoor’s ‘Shree 420’

I played with fearless mindset, took brave decisions: Yashasvi Jaiswal

Related Articles More

Choose correct ITR to report foreign assets; 2 lakh such returns filed: CBDT official

Air India Express increases flight operations from northeast destinations

Mcap of 8 of top-10 most-valued domestic firms jumps Rs 1.55 lakh cr; HDFC Bank, TCS sparkle

Myntra pilots foray into quick commerce with ‘M-Now’ in select locations of Bengaluru

Never entered into pact to operate airport in Kenya: Adani

MUST WATCH

Coconut Flower

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing

DK Shivakumar


Latest Additions

No one has right to break law: BJP on Sambhal violence

Ullal: Auto-rickshaw accident near Konaje claims driver’s life

Congress victory in bypolls not a clean chit to CM in MUDA case: R Ashoka

IPL 2025 | Got someone who can do captaincy job: Ricky Ponting on Shreyas Iyer

Will review INDI alliance’s dismal performance in Maharashtra, says Tejashwi Yadav

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.