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Reliance Jio and Airtel might buy more airwaves in March

Following the Government order for technology advancements in 5G, both Airtel and Reliance Jio are reportedly planning to spend more on the spectrum auction. This sudden change in the development comes soon after the DoT decision to give six months notice for bringing 5G network in the country.

Airtel and Reliance Jio are likely to spend 15 to 20 spend more than earlier than expected in the auction. “Jio and Airtel could each spend an extra 15-20 percent on additional 4G airwaves in select bands in the metro and category A circles, as these 4G spectrum assets can now be deployed for future 5G use quickly,” Nitin Soni, senior director at global rating agency Fitch was quoted by Economic Times.

Besides, Airtel and Reliance Jio are ready for the 5G network and this will allow them to launch the services as soon as possible. The report said that the Government is likely to get Rs. 8,000 crore more than it was expected earlier Rs. 40,000 crore.

Furthermore, industry analysts believe that initially Reliance Jio and Airtel might launch 5G in the selected market. “There may be limited additional interest in select 4G bands with the halving of the notice period to switch to 5G. But Airtel and Jio won’t be able to offer a real 5G experience to customers without the actual mid-band spectrum and a mature devices ecosystem, which is still some time away,” Rohan Dhamija, partner & head (India & Middle East) at Analysys Mason.

For the unaware, the upcoming spectrum auction will have also have a 700 MHz band in the auction. However, operators are not going for the same band as it’s very expensive. Notably, this is the second time that DoT is trying to sell the same band. The 700 MHz is the most efficient band amongst all seven bands. Gizbot News

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