Part of the reason for low interest has to do with the fact that the previous auction had a lot more spectrum on offer than the upcoming round scheduled for June 6. And it is also a reflection on the financial strength of the bidders. Jio’s aggression is based on its rude health, while Airtel is more circumspect, and Vi is not out of the woods despite a government lifeline thrown to the industry. Also, Airtel and Vi had placed an overwhelming part of their bids on spectrum for 5G services in the 2022 auctions at the outset of 5G rollout in the country. The three companies will bid for a little over half the spectrum on offer next month, with frequencies in some super-efficient bands having been exhausted.
The overall picture emerging from bidding intent is India’s telecom companies are under less strain in buying what remains expensive radio frequencies. Their lack of enthusiasm is on account of network rollout and utilisation considerations more than in their ability to pay. This is a healthier picture than obtaining prior to changes in spectrum sales rules that allowed for, among other things, payment in parts.