Telecom operators to bid cautiously in spectrum auction, say analysts

At current tariffs, operators' revenues are not able to cover their operating costs and network capex

Even though sectoral regulator Trai has recommended a reduction in spectrum prices, telecom operators are expected to bid cautiously as they already have high leverage levels, which would constrain their participation in the auction.

According to analysts, telecom operators may look at adding spectrum in their existing portfolio to expand capacity rather than going the whole hog to acquire airwaves in the premium 700 Mhz band or the newer 3300-3600 Mhz band, which will be best suited for 5G services.
 

Telecom Regulatory Authority of India (Trai) has given its recommendations for the next round of spectrum auction, which will be