Telecom spectrum auctions done, all eyes now on imminent tariff hikes: Analysts

Telcos’ payout in the muted spectrum auction is expected to be manageable, and with bidding process wrapped-up, all eyes are now on tariff hikes which seem to be imminent, a cross-section of analysts said on Thursday. Multiple analyst reports expressed surprise at Vodafone Idea (VIL’s) purchase of Rs 3,510.4 crore worth of spectrum, and highlighted in equal measure that Jio’s “muted” spends (Rs 973.62 crore) was in contrast to its earnest money deposit (EMD) that was highest among operators.

IIFL Securities, JP Morgan, and Kotak Institutional Equities, in their reports on Thursday, spoke of how the focus will likely shift to tariff hikes, now that the spectrum auction have concluded.