Mumbai/New Delhi: Reinforcing their positions in the world`s second-biggest mobile market, India`s top three mobile phone network operators have spent a combined $13.6 billion in a government auction of airwaves to secure almost 80 percent of the spectrum on offer.
Cellular Operators Association of India said in a statement, “The outcome of this auction … will eventually lead to a significant outflow of funds and further burden the industry, which already remains under a debt of 2.5 trillion rupees ($39.8 billion).” The heavy bidding reflects their confidence in the potential for data traffic in the world`s fastest growing smartphone market, while also stoking concerns about debt levels in an industry which is already among the most leveraged in Asia.
Telecoms minister Ravi Shankar Prasad said altogether India raised $17.6 billion in the auction after 19 days of fierce bidding, of which the government expects to receive about 288.72 billion rupees ($4.6 billion) in initial payments. Idea Cellular, the country`s third-biggest mobile operator by market share, spent 303.06 billion rupees in the auction, the single biggest amount spent.
