HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Spectrum renewals in recently-held auction to boost telcos' market position: Moody's
Mar-05-2021

Moody's Investors Service in its latest report has said that spectrum renewals in the recently-held auction will boost telcos' market position. At the same time, it said as some telcos have large cash holdings while others recently raised debt to fund the purchases, there will not be a significant impact on their balance sheets particularly, as pricing competition abates and profitability improves across the sector. It also expects operators to opt for deferred spectrum payments, thus helping to mitigate the effect on liquidity and cash flows. 

According to the report, spectrum will be offered for a period of 20 years. It also said successful bidders can pay the entire bid amount in one go (upfront), or exercise an option to pay a certain amount (25 per cent for spectrum won in 700 MHz, 800 MHz, 900 MHz bands or 50 per cent for spectrum won in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront with the remaining amount in a maximum up to 16 equated annual instalments, after a moratorium of two years.

It is pertinent to mention that bids were received in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands, but airwaves in the premium 700 MHz and 2,500 MHz bands went unsold.

  RELATED NEWS >>