Phone operators are not buying! Lacklustre response to spectrum auctions may end sales by this week

The much-awaited spectrum sale for telecom services in the country has seen a tepid response from operators. On the fourth day of the auction, total commitments for spectrum under various bands have come to Rs 63,000 crore and over 60% of the available spectrum has remained unsold.

The government has put up airwaves worth Rs 5.66 lakh crore for sale. Seven mobile operators including Bharti Airtel, Reliance Jio, Vodafone, Idea Cellular, R-Com, Aircel and Tata Teleservices are participating in the auction.

The debt-ridden telecom players have been staying away from the premium 700 MHz and 900 MHz bands.

The government has fixed a pan-India reserve price for each band and they are as follows:

2,500 MHz - Rs 817crore/MHz

2,300 MHz - Rs 817 crore/MHz

21,00 MHz - Rs 3,746 crore/MHz

1,800 MHz - Rs 2,873 crore/MHz

900 MHz - Rs 3,341 crore/MHz

800 MHz - Rs 5,819 crore/MHz

700 MHz - Rs 11,485 crore/MHz

The lower the spectrum band, the higher is the price for it. This is why all telecos are showing interest in the low priced airwaves in 2,300 MHz (already sold out) followed by 1,800 MHz.

As per ratings agency ICRA, the consolidated debt level of the industry stood at around Rs 3,80,000 crore in December 2015, up from Rs 2,90,000 crore in March 2014.