
Recent reports from analysts at brokerage firms including BoFA Securities, Nomura, UBS, Goldman Sachs, and Edelweiss claim that Airtel may be compelled to purchase the more expensive 700 MHz spectrum in the upcoming auction in order to compete with Jio, which has acquired spectrum in this band. According to these estimates, Jio could offer faster indoor speeds thanks to the 700 MHz spectrum, luring Airtel’s high-end customers away.
Bharti Airtel won’t participate in any future auctions for the 700 MHz band because, according to a senior corporate official, its current spectrum holdings and the new Airwaves it purchased in the recently ended Airways sales are sufficient to provide high-quality 5G services. The second-largest telecom company in India refrained from participating in the most recent auctions for spectrum in the 700 MHz band for the same reason, the officials said.
However, Airtel officials disagree, saying that “it does not make sense for us to buy 700 MHz,” according to a corporate official who spoke to ET. “Experience is simply no different. Because more energy is needed for the cell sites, the ecosystem (around the 700 MHz band) has less development and has greater capital and operating costs.”
Recent reports from analysts at brokerage firms including BoFA Securities, Nomura, UBS, Goldman Sachs, and Edelweiss claim that Airtel may be compelled to purchase the more expensive 700 MHz spectrum in the upcoming auction in order to compete with Jio, which has acquired spectrum in this band. According to these estimates, Jio could offer faster indoor speeds thanks to the 700 MHz spectrum, luring Airtel’s high-end customers away.
An Airtel executive said the business fought till the price reached the level of the 900 MHz band in response to its dispute with Jio over 10 MHz of spectrum in the 1800 MHz band in UP (East), which led to the auctions stretching for a week. “We eventually sold for Rs165 crores. There was no purpose in spending more than Rs 160 crores for the 900 MHz spectrum. The price had to be right, he insisted. Jio paid Rs 1,646 crore to acquire 10 MHz in the band in UP€.
It is widely acknowledged that this mode is a must for moving into the 5G standalone (SA) future, in which all infrastructure transmits solely 5G signals.
The majority of traffic will eventually switch from 4G to 5G, all devices will support all modes and bands, and Voice on 5G will become mature, which could take more than four years. At that point, all networks will switch to SA.
“In the case of our competitor, Reliance Jio, they cannot provide NSA since they do not have adequate mid-band. They can only give SA, which requires that you invest Rs 40,000 crore to purchase the 700 MHz band, one of the airtel executives stated.
Since every JioPhone user is utilising the 4G network and cannot be utilised for 5G NSA, he noted that Jio’s 1800 MHz and 850 MHz bands were supporting high traffic.
Out of the 88,078 crore rupees that Reliance Jio spent at the auction to acquire 24,470 MHz of airwaves, Rs 39,270 crore went toward purchasing the 700 MHz band. 19,867.8 MHz of spectrum was purchased by Airtel for Rs43,084 crore.