Jio buys the most in spectrum auctions
Jio’s spectrum purchase of Rs 571 billion ($8bn) was substantially higher than forecast (less than $3bn) and clearly there is some upside risk to the total capex forecast of $9bn over FY21-23, JP Morgan said.
image for illustrative purpose
New Delhi: Jio's spectrum purchase of Rs 571 billion ($8bn) was substantially higher than forecast (less than $3bn) and clearly there is some upside risk to the total capex forecast of $9bn over FY21-23, JP Morgan said.
"We also find the Chairman's comments about the spectrum purchase allowing it to enhance the experience for the 'next 300mn subscribers' as intriguing and some might read it as indicating that Jio remains focused on subscriber additions over tariff increases. We maintain our view that tariff increases over FY21-23 are likely going to be substantial, driving large earnings increases for RIL," it added.
RIL announced that its subsidiary RJIO (Jio) has acquired the right to use spectrum in all 22 circles across India in the recent spectrum auctions for a total cost of Rs 571bn ($8bn); this is substantially higher than our forecast of $3bn. Spectrum has been acquired across 800 MHZ, 1800 MHZ and 2300 MHZ, and with this total spectrum has increased by 55 per cent to 1717 MHZ. Per RIL, the average life of the spectrum now stands at 15.5 years and the acquired spectrum can be utilized for the transition to 5G services.
