Wireless Spectrum prices in India peaked with the 3G auction [2100 MHz] at Rs 33,501m/Mhz (pan- India), driven largely by policy uncertainty around license renewals and future availability. Telecom Spectrum costs since then are rapidly falling and stand at Rs 23,786m/Mhz (pan-India) for the 1800Mhz band. They are likely to fall further since auctions have failed in key markets, which would necessitate a further reduction in reserve prices.
The government is obligated to auction the entire spectrum that has been released from the cancellation of the scam-tainted licenses, which will effectively increase spectrum availability by 60-90% in most markets. The current spectrum price is around 6x the price of spectrum in 2001. During the same period, nominal GDP has grown by 4x, suggesting that spectrum prices are moderating to historical levels (adjusted for the size of Indian economy). Tariffs channel checks indicate a clawback of value by operators.