Mumbai: Crisil said telecom players will bid aggressively in the forthcoming spectrum auction and the government may be able to raise Rs 90,000 crore through the sale of radiowaves.
The credit rating agency said in a note, “With nearly half of Rs 1,200 billion annual revenues at stake for large operators, the importance of the forthcoming spectrum auction can’t be overstated. Telecom operators will shell out more than Rs 900 billion to bag airwaves (radiowaves) in the upcoming telecom auction.” The government has set a very high base price for the auction, which is slated to help public finances in a big way, given the slow revenue growth during the current fiscal.
The bidding for four spectrum bands – 900 Mhz, 1800 Mhz, 2100 Mhz (used for 3G services) and 800 Mhz (used by CDMA operators) – is scheduled to start from March 4. Winners will have to pay 30 per cent of the amount upfront, while the rest will be in deferred payments spread over 10 years, after a two-year moratorium.
