Currently, only Bharti Airtel and Reliance Jio have already deployed 5G networks nationwide

Indian operators are expected to spend less on 5G frequencies in the upcoming spectrum auction compared to last year’s 5G spectrum offering, according to a report by Crisil Ratings.

The report noted that the reduced spending on 5G spectrum will be chiefly due to the high debt levels of the telecom operators and their current focus on network expansion and infrastructure improvement.

Crisil Ratings, which is owned by S&P Global, highlighted that Indian carriers are likely to prioritize investments in expanding 4G coverage and capacity rather than investing heavily in 5G spectrum.

Also, the delay in the launch of 5G services by Vodafone Idea has also contributed to the reduced spending expectation, Crisil said.

Currently, only Bharti Airtel and Reliance Jio have already deployed 5G networks nationwide, while Vodafone Idea is yet to announce its 5G launch plans due to financial constraints.

The Crisil report also highlighted that fact that local operators are still facing certain financial challenges, including high debt levels and low ARPU. These factors could further impact their ability to invest significantly in 5G spectrum, Crisil said.

India’s Department of Telecommunications (DoT) recently started the process for auctioning the next round of 5G spectrum, sending a reference to the Telecom Regulatory Authority of India (Trai) seeking reserve price for various bands.

According to government officials, all the unsold frequencies from last year’s spectrum auction, as well as some additional frequencies in the 37 GHz band, will be put up for sale.

The DoT has excluded the 6 GHz from the upcoming sale. Local operators are asking the government to award this spectrum band for the provision of telecom services while tech companies want this band for the provision of Wi-Fi, according to the report.  The DoT still has to make a final decision on this issue.

Trai will now study the reference from the DoT and come out with a consultation paper on the issue in the coming weeks, the report adds.

Also, the future spectrum auction will include the frequencies that are set to expire in 2024, according to a previous report.  The report highlighted that spectrum in the 900 and 1800 MHz bands for eight circles including UP (East), UP (West), West Bengal, Assam, Bihar, J&K, North-East and Odisha is expiring in 2024. The spectrum is currently being held by Bharti Airtel and Vodafone Idea.

India completed its first 5G spectrum auction last year. Reliance Jio walked away with the most spectrum, having spent $11 billion. Airtel won spectrum worth $5.4 billion, while Vodafone received spectrum worth $2.4 billion. Finally, Adani purchased spectrum worth approximately $27 million, which it will use to offer private 5G network services.