After this auction, the next spectrum renewals are around 6-7 years away, which is a big relief. There may be some more auctions on 2.1GHz or 700MHz, but given the balance sheets of the existing telcos, the next ones are likely to be more subdued, we think.
If and when the auctions are over, there will be more discussion again on telcos looking to increase prices to recover costs. That is entirely possible, but as seen in recent years, it is not easy to increase prices ? these are not always linear and the volume equation is critical.
Data price increase scenario is also a tricky one, we think. Many telcos are trying to increase data prices across the region, and it does
happen. But it is happening more for those telcos that have decent networks, ie, customers are willing to pay for good quality. The problem for the India telcos could be that for them to increase data prices, networks need to improve first, for which more capex may be
needed, for which more cash is needed, which is a challenge.
