Why Indian Telecom Giants Aren’t Buying Spectrum
Telecom Minister Ashwini Vaishnaw inaugurated Nokia's 6G research laboratory
A substantial amount of spectrum, of over 12,000 MHz, remains unsold in India’s traditional bands across various frequencies.
By SANJAY SINGH
NEW DELHI, October 1, 2025— India’s telecom sector is booming, with a population exceeding 140 crore and rapidly rising internet penetration. Despite the projected double-digit growth in demand for telecom services, telecom companies are not purchasing spectrum.
Industry sources said telcos are still recovering from previous large investments in 5G spectrum and network rollout. Companies are also unlikely to buy spectrum due to excessively high reserve prices or if they are being pressured to shift to new licensing models against their preference for existing contractual certainty.
Currently, unsold spectrum according to reports indicate that a substantial amount of spectrum, of over 12,000 MHz, remains unsold in India’s traditional bands across various frequencies, including 1800 MHz and 900 MHz, because there were no bidders.
Telecom Regulatory Authority (TRAI) has released a consultation paper on the auction of spectrum for International Mobile Telecommunications (IMT) services, inviting feedback by October 28, 2025, with the goal of reforming the auction process after a lukewarm response to the June 2024 auction.
The paper proposes considering a staggered approach to releasing spectrum, reviewing band plans and block sizes, and exploring the timing for auctioning the 6 GHz band, which is a significant new band for potential mobile use.
After spending significant amounts in past spectrum auctions, such as the ₹ Rs 1.5 Lakh crore in 2022 for 5G spectrum, telecom operators are focused on recouping these investments and funding network rollout, which reduces their immediate need for more spectrum.
This besides high reserve prices, telcos have historically opposed spectrum auctions due to what they perceive as excessively high reserve prices set by regulators, making the purchase cost prohibitive.
Telcos have expressed concerns about a proposed shift in India’s licensing regime, fearing a loss of the contractual certainty and safeguards present in current licensing agreements.
The industry has argued that any new authorization regime for spectrum would lack contractual safeguards that pose regulatory uncertainty and negatively impacting investor confidence, leading to opposition to a mandatory shift.
India’s 5G subscriber base is expected to grow 2.65 times, reaching 770 million by 2028, up from 290 million in 2024, according to Nokia’s annual Mobile Broadband Index (MBiT) report.
India’s digital economy is set to reach 20% of national income by 2029-30, driven by IT, telecom, and electronics manufacturing, with a 13.42% share expected in FY25. India ranks 2nd in international mobile broadband internet traffic and international Internet bandwidth.
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