iWorld

900 MHz spectrum expected to sell for four times the reserve price: HSBC Research

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/internet-images/2014/11/01/iworld%20telecom.jpg?itok=tY473BOZ

NEW DELHI: Government proceeds are expected to be $ 9 billion from the upcoming spectrum auctions, 20 per cent higher than the government's own estimates, according to a study by HSBC Telecom and Media Global Research.

The research also says that it is possible that in a few markets the cost for 5 MHz of 900 band may exceed the 3G prices as well.  

The estimates are 1.4 times higher than the reserve price recommended by the Telecom Regulatory Authority of India (TRAI) for 900 MHz spectrum band. For 1,800 MHz band, the estimates are 1.2 times of the reserve price suggested by TRAI, the report adds.

Demand for data spectrum is likely to be a key driver in the upcoming spectrum auctions, if one goes by earlier auctions. At present, the two top players who are better placed to add more spectrums - Idea and RCOM – are likely to be more defensive, according to the study.





It further noted that there is uncertainty for both investors and operators whenever there is talk of spectrum auction.

The spectrum auction earlier this year saw an unexpected contest for 1,800 MHz spectrum as the entry of pure 4G players forced incumbent operators to add 4G spectrum selectively, stated the research paper.

Moreover, it added that the most interesting trend has been robust data revenue growth (data revenue growth in FY14 was 90 per cent year on year for the top three players).

“While this is positive, it raises the need for additional capacity spectrum (incumbent telcos are already talking about congestion particularly in metro markets with 20 per cent to 30 per cent of their BTS). Operators have so far been highlighting the need to add data footprint but in the markets where they have 5MHz of spectrum, and it will be important for them to get to 10MHz sooner than later (over the next couple of years) to accommodate data growth,” the research revealed.

The study has found that ‘doubling of spectrum will more than double the throughput for telcos and in turn allow them to benefit from lower per unit costs as well with doubling of spectrum.’ 





The need for capacity spectrum, the study said, is likely to drive prices up for spectrum in the upcoming auctions.  

While both Bharti and Idea face auctions in some of their key markets, the latter has more exposure in the upcoming auctions versus Bharti. The study says this implies that telco Idea is likely to focus more in retaining spectrum in existing markets.

On the other hand, the top two players Bharti and Vodafone could look at adding more spectrum in the 900 band, according to the report. HSBC was positive on Bharti with a target price (TP) of Rs 481 and Neutral on Idea Cellular with a TP of Rs 172. The key downside risk for Bharti will be losing spectrum in the 900 MHz band.  The key upside risk for Idea will be the release of additional data spectrum and the key downside risk will be losing spectrum in the 900 band. The study is somewhat negative on RCOM with TP of Rs 100 and the key upside risk for them will be ability to benefit from spectrum trading. 

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/29/chumbak.jpg?itok=TfS2CZRm
The Script Room completes one year with 41 films over five brands

MUMBAI: - Having successfully created over 40 ad films across youth brands like Netflix, OYO, Chumbak, Beck’s Ice and Groww, a financial services app, The Script Room, a fast-growing writers' hub is celebrating its one-year completion amidst lockdown. A company born out of an enthusiastic and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/29/hbo.jpg?itok=RCSZaADk
HBO Max launches in the US with impressive content library

Every other week a new streaming service enters the market. But the arrival of HBO Max is more significant. WarnerMedia’s foray into the market creates a buzz because of its  big library of TV shows and films from popular brands like HBO and Warner Bros.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/29/2.jpg?itok=MWYWb4ok
FilmKaravan Originals, makers of 'Delhi Crime', releases first feature presentation

FilmKaravan Originals, the producers of the Netflix Original Delhi Crime, is in it for the long haul. The much-talked about taut thriller based on the investigation of the 2012 Delhi gang rape case had been widely praised and lauded by critics and audiences alike.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/hockey.jpg?itok=jwB7Lae4
International Hockey Fed partners NAGRA to deliver novel digital experience for fans

MUMBAI: The International Hockey Federation (FIH), the world’s governing body for the sport of hockey, and NAGRA, a Kudelski Group company and the world's leading independent provider of content protection and multi-screen video solutions, have signed a ten-year partnership that brings together the...

iWorld Gaming
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/eortv.jpg?itok=1WKC3eQ6
LGBTQ-focused streaming service EORTV launches website on OTT platform

MUMBAI: OTT media service platform EORTV has launched its website www.eortv.com with a differentiated philosophy to focus on the LGBTQ audiences and other communities. The mission of this new OTT platform is to be inclusive and create acceptance for all communities in society by eliminating any...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/nimot.jpg?itok=usv1PXHQ
Game-streaming app NimoTv launches in India

MUMBAI: Live streaming platform for games and e-sports NimoTv has officially been launched in India. NimoTv is the overseas unit of Chinese game live streaming platform Huya. The app is available for Andriod and iOS users. NimoTv is a platform for all the gamers to stream. The company intends to...

iWorld Gaming
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/voot.jpg?itok=_EsTqTGf
Voot partners with upGrad, expands content play to edutainment

MUMBAI: Leading streaming platform Voot has tied up with the largest online higher education company upGrad. This opens a doorway for consumers and working professionals to seamlessly access the best of entertainment and education videos, all under one roof.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/azaz.jpg?itok=02OaOEdR
Ayaz Memon Joins 1 Play Sports

MUMBAI: Sports media narrowcasting startup in the Asia Pacific 1 Play Sports has brought sports journalist Ayaz Memon onboard as consulting editor-in-chief, India from May 2020. Memon, a media veteran with over 40 years’ experience, will lead the thrust for 1 Play Sports to deepen its roots and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/28/sony.jpg?itok=A-IknfG5
Applause Entertainment signs multi-show deal with SonyLIV

Applause Entertainment has announced a content licensing deal of four premium drama series with SonyLIV, the popular on-demand video streaming service from Sony Pictures Networks India.

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required