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Commenting on the telecom spectrum auctions, credit rating agency ICRA in its latest report said that the results of telecom spectrum auctions, that grossed over Rs 77,800 crore, have exceeded initial estimates. It noted that while the value of total spectrum sold is only 19 percent of the total value of spectrum on offer, post the auctions, the debt levels of the industry would increase further to around Rs 5 lakh crore as on March 31, 2022 and despite the improvement in the operating metrics, the debt protection metrics will continue to remain weak. 

According to the report, the telcos not only bid for renewals of the expiring spectrum but focused on consolidating their spectrum holdings in the 800 MHz, 900 MHz and 2300 MHz bands. It stated that while the sub-GHz bands will be crucial for 5G technology deployment going forward as well as improvement of indoor coverage, the appetite for 2300 MHz band stems from the rising mobile broadband usage and thus the need for improving network capacity.

ICRA further said while there was no interest in the 700 MHz band this time around too, 2100 MHz band witnessed ‘muted’ participation. It also said spectrum acquisition for bolstering the data capabilities remained the theme of these auctions.