COAI: Telecom companies have appetite to buy 4G spectrum due to increased data consumption: COAI – Latest News

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New Delhi: Telecommunications companies Reliance Jio and Bharti Airtel may have an appetite to buy 4G spectrum at the proposed auction of radio waves to address demand for data consumption, industry body COAI said on Friday. The government plans to hold the next round of spectrum auction for October this year in which it will sell around 8,000 megahertz of radio waves in various bands at a cumulative value of around Rs 3.8 lakh crore that can be used for 4G services.

"I think Reliance Jio and Bharti Airtel have indicated that they will be interested in acquiring 4G spectrum due to increased demand and the traffic pattern has changed. The industry is ready to increase 4G spectrum," said COAI CEO. , Rajan S. Mathews.

The telecommunications sector body had previously expressed against the spectrum auction due to financial stress in the sector.

The government has relaxed the payment terms for the auctions that were held previously, as well as for the next round.

Previously, companies had to pay for spectrum purchased at auction in eight annual installments which has now been changed to 16 annual installments.

The DoT selected public sector company MSTC Ltd as the auctioneer to carry out the next spectrum sale round.

The public sector company held coal auctions in early 2015 that were held after the Supreme Court canceled the coal mine allotment in September 2014. It is also conducting auctions for various central and state government departments.

This is the first time that MSTC has been selected to handle the spectrum auction.

The government plans to auction radio waves in bands of 700Mhz, 800Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz.

"There is a certain amount of spectrum to be renewed, but the demand is largely to increase existing capabilities. Vodafone Idea has merged, so we don't have an exact idea of ​​its need," said Mathews.

The DoT is known to have dropped plans to auction the spectrum in the frequency range of the 3,300 -3,600 Mhz band that it proposed to use for 5G services.

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