The Department of Telecommunications (DoT) is not going to offer the costly 600 MHz spectrum band to the telcos again. But this is not a forever thing, as the decision to not offer the 600 MHz band could only be for the next auction. Its price was the same as the 700 MHz spectrum band in the previous auctions that took place in mid-2022. At Rs 3,927 crore per unit, the 600 MHz spectrum band was the costliest on the lot. It found no takers among the participants. Even the 700 MHz band was only taken by Reliance Jio.
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The next spectrum auction is going to take place soon. It is expected to conclude within FY24. Through this auction, telcos will look to buy spectrum in circles where their existing airwaves will expire shortly. In the next spectrum auction, the DoT doesn't plan to offer the 600 MHz spectrum, according to an ET report.
The government wants to take its time and understand the best use of the 600 MHz spectrum to ensure that it doesn't interfere with satellite services. In the next auctions, telcos may get all the unsold spectrum from the previous auctions leaving the 600 MHz band. The 700 MHz band will likely not see any suitors again this time.
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Bharti Airtel has cleared its intent of staying away from spending too much money by getting the 700 MHz band since it serves no additional advantage to its mobile networks. Airtel believes that the coverage capacity that the 700 MHz band will offer can already be achieved by its mobile networks by efficiently using them.
The government will definitely offer the 600 MHz band in the future, but not this time. After further studies, the govt will be able to determine what is the best way to use the 600 MHz band in the IMT services so that it doesn't interfere with the satellite services.
