India’s 3G spectrum auction has come to a close with no party acquiring a countrywide licence. Leading operators Bharti Airtel, Vodafone Essar and Reliance Communications all predictably picked up the most sought after frequency in Mumbai and Delhi as…
India’s 3G spectrum auction has come to a close with no party acquiring a countrywide licence.
Leading operators Bharti Airtel, Vodafone Essar and Reliance Communications all predictably picked up the most sought after frequency in Mumbai and Delhi as the government brought the process to a halt around US$11bn the richer.
Vodafone, which has just written down over 25% of the value of its Indian business, will pay around US$2.5bn for its spectrum with Bharti paying a similar sum.
Nine operators were bidding for spectrum with Tata Teleservices, Idea Cellular, Aircel and STel also picking up new spectrum.
While the government will be delighted to have raised more funds than anticipated the operators must now turn their attentions to a strategy that ensures a healthy return on a hefty investment. There is also expected to be a spate of consolidation as some of India’s smaller operators will likely sell up rather than attempt to fight the industry giants.
