Bharti Airtel to Spend Rs 9800 Crore in Spectrum Auction: HSBC

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HSBC Global Research in a report on Monday said that it expects Bharti Airtel to invest Rs 9800 crores in the upcoming spectrum auction. The independent research firm with a “strong focus” on the emerging markets said that it doesn’t expect the wireless operators to purchase the entire spectrum set for renewal. HSBC also said that Airtel is set to witness an improvement in its average revenue per user (ARPU) in the upcoming years. The firm said that the migration of users from 2G to 4G along with a potential hike in the tariff in the next financial year will contribute to the ARPU increase.

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HSBC Says Industry Likely to Skip 700 MHz Spectrum

HSBC estimates Reliance Jio and Vodafone Idea to invest Rs 12,500 crores and Rs 3300 crores respectively in the upcoming spectrum auctions scheduled for early March.

“We don’t expect operators to purchase the entire spectrum coming up for renewal as operators have enhanced their spectrum holdings over the last few years,” HSBC said in its report.

The firm said that Airtel and Reliance Jio could buy “incremental growth spectrum” in the sub-GHz bands along with the 1800 MHz and 2300 MHz bands. HSBC said that the move to buy the “incremental growth spectrum” would “reduce network capex forecasts.”