900 MHz should see fierce bidding as it is a renewal auction and the minimum bid size is 5 MHz; implying only two operators can acquire it in each circle. In addition, 800 MHz and 2100 MHz are also being auctioned.
Idea has 92% of its 900 MHz spectrum coming up for auction, thus faces the highest risk. Given its balance sheet strength, we think that Airtel will bid aggressively to acquire more spectrum.
Data volumes have been growing 20-25% QoQ and hot spots in the country are witnessing congestions. Our case study on Asian operators suggests as data increases, so does capex to sales, which is over 25% in Asia currently
