Ringing in 2021

India’s telecom sector is expected to see some major developments in 2021 which will fuel the growth for all telecom operators.

The government announced 4G spectrum auctions in March this year even as Reliance Jio expects 5G launch to take place in 2021.

Additionally, clarity on BSNL’s 4G tender is expected this year even as other telcos and internet service providers continue to focus on their wired broadband businesses.

India is also likely to see some adoption on the OpenRAN front this year.

Here are some trends that are expected to emerge in the Indian telecom sector in 2021: Spectrum auction. This year, the big 3 telcos Reliance Jio, Bharti Airtel, and Vodafone Idea are expected to participate in spectrum after nearly four years. The auction is expected to fetch about Rs 55,000-Rs 60,000 crore the exchequer according to credit rating agency ICRA.

NIA. The telecom department (DoT) is also expected to release the Notice Inviting Application (NIA) shortly ahead of the spectrum auction scheduled for Q1CY21. While Reliance Jio with a subscribers base of over 406 million will seek to renew a large chunk of its expiring spectrum, Vodafone Idea (Vi) and Bharti Airtel would strengthen their broadband prowess to cater to increased data demand.

This is also the first time when only three private telcos would be bidding for spectrum holdings as the stiff competition in the sector has not only led to consolidation of telcos but also forced some telcos to exit completely. Bharti Airtel and Vi – with about 294 million users and 272 million each – have less expensive airwaves, mostly in the 1800 MHz band, set to expire across eight circles each from July. Both have backup airwaves in most service areas.

According to a telecom analyst, Reliance Jio will have to shell out up to Rs 30,000 crore while Airtel would pay up to Rs 15,000 crore and Vodafone Idea only a few thousand crore since it has backup waves in services areas. The successful bidders will also have to pay 3% of AGR, excluding wireline services, as spectrum usage charges for airwaves won through this auction. Moneycontrol