According to CLSA, the spectrum auction, to be held by the Department of Telecommunications (DoT), is largely focused for the renewal of spectrum for Bharti Airtel and Vodafone Idea Limited (Vi).
CLSA stated that the upcoming spectrum auction will be closely observed as telcos will focus on strategic renewals rather than aggressive bidding for new spectrum. The focus of this auction is expected to be on renewing the expiring spectrum.
As per CLSA, Bharti Airtel and Vi are facing spectrum renewals in six and two circles with spendings likely to amount to $ 466 million and $ 157 million respectively.
It also highlighted that the total earnest money deposits (EMD) submitted by telcos for 2024 auction are 80 per cent lower than the 5G spectrum sale in 2022, which indicates limited bidding activity.
In addition, CLSA mentioned that although Reliance Jio has put in the maximum EMD of $ 3 billion, previous auctions confirm high EMD do not result in full spending.
