Although we expect spectrum prices to correct, the correction is likely to be limited to the 700MHz spectrum band. 700MHz spectrum, which has similar propagation characteristics as 900MHz and 800MHz bands but inferior LTE ecosystem, is priced at a substantial premium
to 900MHz and 800MHz spectrums.
We expect this anomaly to correct in the upcoming
mega spectrum auction 2016 as telecom operators shy away from investing in the same compelling the government to offer it at a discount in subsequent auctions.
