Nothing transformational in TRAI’s 5G pricing: Analysts

The reduction proposed in pricing, though largely on expected lines, is not in sync with the 90 per cent drop that the industry had been asking for, the experts said.
Nothing transformational in TRAI’s 5G pricing: Analysts

New Delhi: Trai recommendations on cut in 5G spectrum base price are incrementally positive, not transformational, some sector analysts said, while others felt bidding intensity could be moderate or muted in the upcoming auction.

The reduction proposed in pricing, though largely on expected lines, is not in sync with the 90 per cent drop that the industry had been asking for, the experts said.

Credit Suisse in its note said recommendations are “incrementally positive” and that Jio and Airtel are well placed to participate in the auction. “Trai recommends 25-50 pc reduction in spectrum pricing; incrementally positive but nothing transformational,” Credit Suisse said.

The 700MHz band could likely see demand by telcos, it added.

“Also, while the price for 3.4 GHz 5G spectrum was reduced by 36 per cent, it was lesser than telcos demand for about 90 per cent reduction. Also, the price for mmWave spectrum has been set at 2.2 per cent of the price of 3.4 GHz spectrum versus telco’s demand for about 1 per cent,” it said.

Emkay Global noted the reduction proposed in key bands of 3300-3670 MHz and 700 MHz bands, but went on to say that: “Although the reduction is largely on expected lines, it is lower than the industry’s demand of about 90 per cent cut”.

In its report, ICICI Securities said spectrum prices for 700MHz have seen a steeper cut of 58 per cent (on a comparable basis) “but still remain expensive”.

Nothing transformational in TRAI’s 5G pricing: Analysts
TRAI recommends over 35% cut in prime 5G spectrum base price

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android

Related Stories

No stories found.
DT next
www.dtnext.in