The regulator (TRAI) has recently released a consultation paper on spectrum auction, which includes plans to auction 700MHz spectrum. This will be the most efficient spectrum that will become available to the operators.
TRAI claims that 2x45 MHz spectrum (FDD) can be utilized in this band, though as per the information provided by DoT, 35 MHz (paired) spectrum is available for commercial purpose in each of the 22 circles (others would presumably be held by Defence). The coverage efficiency of 700MHz notwithstanding, the interest from the operators, based on their comments to the regulator, is expectedly muted.
Incumbents should be interested in the band given that they are primarily using 1800MHz and the coverage efficiency of 700 over 1800 is quite material (250% more efficient). It becomes imperative given Jio?s 800MHz holding. However, we believe that the interest of incumbents is likely to be dampened given their high leverage.
