The latest postponement eases spending pressure on India’s mobile operators, but deprives the government of near-term telecom revenue as carriers await cheaper airwaves.
India’s mobile operators appear to have won a useful pause as the next spectrum sale slips further out of reach, giving them another year to focus on using what they already own rather than buying more airwaves. Communications Today reported that the government is now expected to miss its target for an annual auction again, extending an irregular pattern that has become increasingly familiar since the launch of 5G.
The delay suits Reliance Jio, Bharti Airtel and Vodafone Idea. After the 2022 5G auction, in which spectrum worth about INR 1.5 trillion changed hands, the three private-sector carriers were left with sizeable holdings across the main bands. That appetite weakened sharply in the June 2024 sale, when only INR 11,340.78 crore was raised from spectrum worth INR 96,320 crore on offer, according to the Department of Telecommunications. The gap underlined how reluctant operators have become to spend heavily on fresh spectrum while returns from 5G remain limited.
That caution reflects a broader financial reality. Telecom companies are still trying to recover the cost of rolling out 5G, while also funding network expansion, fibre backhaul and preparations for 5G Standalone services. Industry data from the 2024 auction showed that bidding was limited and concentrated in just a few bands, with no interest in several of the frequencies on offer. The government said at the time that the auction was intended to meet operators’ requirements and keep services growing, but the muted response suggested the sector is in no hurry to buy more capacity unless pricing becomes more attractive.
Pricing is likely to become the main talking point whenever the next sale is eventually held. In February, the Telecom Regulatory Authority of India recommended putting more than INR 2 trillion worth of airwaves on the block and cutting reserve prices, with proposed starting levels below those used in both 2022 and 2024. The regulator’s plan also included new 5G spectrum in the 37-40 GHz band. Operators have long argued that lower reserve prices would leave them more room to invest in networks, and a later auction on cheaper terms would fit that argument neatly.
For now, the absence of immediate renewal pressure also works in their favour. Licences issued around 2007 are not due to expire at once, and Vodafone Idea’s near-term renewal needs can be handled administratively to avoid disruption. The government has also signalled that future sales will be timed to demand rather than to a rigid calendar, as the industry moves towards 5G Standalone and, eventually, 6G. For the exchequer, however, the postponement means sacrificing near-term revenue from one of the state’s most important telecom income streams.
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