Home BUSINESS ‘Spectrum will boost Jio, Bharti’s market share’

‘Spectrum will boost Jio, Bharti’s market share’


The strengthening of spectrum footprints by Bharti Airtel and Reliance Jio in the just-concluded auctions is expected to yield market share gains for the two telcos, arming them with sustainable advantage in the long run and for 5G play, according to analysts.

With the auctions completed, it would be key to monitor Vodafone Idea Ltd.’s (VIL) balance sheet and its potential capital raising, signals of price hike, unveiling of a Jio-Google smartphone, and 5G spectrum auctions, they noted.

Analysts across-the-board concurred with the government’s view that at ₹77,814 crore of total bids, the spectrum auction outcome and response had surpassed expectations.

Goldman Sachs noted that Bharti and Jio had “significantly” bolstered their spectrum footprints, and that strengthening of radiowave holdings “could aid their market shares while at the same time keeping capex under check”.

In all service areas and bands, spectrum was sold at reserve prices, indicating that this higher-than-expected participation was a function of telcos looking to secure their medium-term spectrum needs rather than a result of a bidding war, the firm said.

‘Tariffs may rise’

The more-than-expected participation from telcos in the auctions increases the probability of a price hike as a way to offset the increase in leverage, market watchers said.

“While the March ’21 auction was largely a non-event for Vodafone Idea, the company’s limited ability to participate in future 5G spectrum auctions (due to its stretched balance sheet) could result in further erosion of its market share,” Goldman Sachs said.

Moody’s Investors Service said spectrum renewals will help incumbents protect their market positions while additional bandwidth purchases will drive improved network coverage.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.


A one-stop-shop for seeing the latest updates, and managing your preferences.


We brief you on the latest and most important developments, three times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not currently include the e-paper, crossword and print.



Must Read

Do not agree with the claim that Huawei will be blocked: Jay Chen

For the purchase of telecommunications equipment & # 39; reliable sources & # 39; There is uncertainty about the inclusion of the Chinese...

India condemns violence in Myanmar, urges maximum restraint

United Nations: India has condemned the violence Myanmar And mourned the loss of life, as it urged and called for maximum...

Rajinikanth honored with Dadasaheb Phalke Award

The honor is considered India's highest award in cinema. Five days ahead Tamil Nadu ElectionThe Narendra Modi government on Thursday announced the Dadasaheb Phalke...

Split Trap Center, 8 32,835 Crore., Betters revised estimates

Government. Originally budget of 2.10 lakh crores. The government has withdrawn ₹ 32,835 crore from CPSE's share sale and buyback, thus exceeding the disinvestment...

California shooting: At least 4 deaths including child in business complex shooting in Orange city World News

Los Angeles: A Shooting in Southern California Police said the office building on Wednesday killed four people, including a child, and...