The telecom spectrum auctions for 5G will be rolled out in the next 12-18 months, which means that there is no need for the telecom companies to bid excessively for the 4G spectrum, said telecom expert Rajiv Sharma.
Spectrum auctions kick off today with 2,251 MHz of airwaves up for grabs. The government's valuation for airwaves up for sale is Rs 3.92 lakh crore. Also note, there will be no auction for the 5G spectrum.
Speaking in an interview with CNBC-TV18, Sharma said, “5G should get rolled out before the next general elections, it will suit the narrative of this government. Therefore, keeping that in mind the spectrum auctions for 5G are likely in the next 12-18 months, which means that there is no need for the telecom companies to bid excessively for 4G spectrum.”
“As far as Jio is concerned, they have ‘2G Mukt Bharat’ vision and they may need some more spectrum in the interim if they are successful with their Jio smartphone, which is in the coming, and try to grab more subscribers. So to accommodate that they may need some more 4G spectrum but that will be an interim requirement and if that is coming late then all the 3 telcos (Jio, Bharti, Vodafone Idea) are likely to stick to renewals,” he said.
Watch the video for moreDisclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.