Airtel terms pricing of 5G spectrum exorbitant, seeks govt review

“These prices are exorbitant given that the state of 5G ecosystem, is still nascent. So, we would hope that the Government brings down prices of spectrum and reserve prices of spectrum, and that is the stage we would look seriously at 5G,” the company’s MD and CEO, India and South Asia, Gopal Vittal said during an earnings call.

Vittal said the base prices recommended by the Telecom Regulatory Authority of India places the radio waves in the ballpark range of Rs 50,000-55,000 crore for 100 MHz of spectrum. “5G requires large quantities of spectrum. If you have 40 MHz, you don’t get 5G type requirement, so in terms of speed and latency you require large chunks of spectrum. Clearly, these are prices we can’t afford,” he said.

The management of Bharti Airtel said the competitive intensity has stabilised to the extent that the company has not seen a reduction in tariffs. But it conceded the marketplace continues to be brutal, given the Average Revenue Per User, which used to be about Rs 200, has slipped to Rs 125. The capital expenditure had already peaked in FY19 and the current financial year would see a moderation in capex.