Although prices for 900MHz spectrum escalated only 1.9% on day 6 (1.7% on day 5, 5.2% on day 4, 11.8% on day 3), demand continued to outstrip supply.
Demand for 800MHz spectrum is limited to 14 circles, while the average price increased 5.7% on day 6. In the 1800MHz spectrum, price rise was limited to only 3 circles, while Gujarat and Kerala circle saw demand for the first time on day 6. While prices for 1800MHz spectrum jumped 8.7%, those for 2100MHz spectrum rose 0.4%.
Although the pace of price rise has slowed down, demand continues to outstrip supply across all spectrum bands, except 2100MHz. We anticipate Bharti to aggressively bid for spectrum to expand its footprint. Idea may opt out of spectrum renewal in 1 or 2 circles such as Karnataka, where it has bought sufficient 1800MHz spectrum and has relatively low revenue market share, or Kerala, where it has already bought 10MHz spectrum in the 1800MHz band
