According to CRISIL, telecom operators are expected to spend less on 5G airwaves in the upcoming auction than they did in the July 2022 auction, as they already have sufficient spectrum holdings. Given that all private telecom operators hold spectrum worth Rs 1.5 trillion from the previous auction, a lower participation is anticipated in the upcoming auction.
CRISIL informed that the government had sold around 71 per cent of the over 72 GHz of airwaves in July 2022 itself. Meanwhile the large spectrum investments in the financial year 2022 resulted in debt of telcos rising up to Rs 6.3 trillion as of March 31, 2023 from Rs 4.6 trillion on March 31, 2022, CRISIL stated.
Further, CRISIL noted that the collective operating profit of Indian telecom operators is likely to grow by 15-17 per cent year-on-year to Rs 1.2 trillion in FY24 due to the increasing demand for larger data bundles.
