After the end of the spectrum auction, now the telecom companies are preparing to increase the rates. According to experts, the rates may increase by 15 to 20 percent from July, due to which the use of mobile phones will become expensive. Telecom companies can also increase the headline tariff.
Let us tell you that this increase can be seen in both prepaid and postpaid. Companies have spent 11,340 crore rupees in the auction. Now they can start recovering that cost. The headline tariff was last hiked in December 2021. Since then the companies have only enhanced their base packs. It is being said that Bharti Airtel may be the first to announce the increase.
The impact can be seen on the company’s shares
Gaurav Malhotra, executive director of Axis Capital, says that the impact of increasing tariff rates of telecom companies can be seen on their shares. According to him, the shares of Bharti Airtel can touch the target of Rs 1534 in the near future. A similar situation will be seen in the shares of Reliance. It will soon be seen touching the target price of Rs 3512.
Government got so much from spectrum auction
The government had set a reserve price of Rs 96,238 crore for the spectrum auction, but by the end of the auction on the second day, the government could only get bids worth Rs 11,340.78 crore. All the three telecom companies have purchased only 141.4 MHz spectrum. The mobile spectrum auction started on Tuesday. The next day on Wednesday, when the auction started at 10 am, it ended a few hours later. Bharti Airtel was the frontrunner in buying spectrum in the two-day auction process. It purchased spectrum worth a total of Rs 6,856.76 crore.
While Reliance Jio, the country’s largest telecom company, bid Rs 973.62 crore for the spectrum. While Vodafone Idea has bid for spectrum worth around Rs 3,510.4 crore. In total, the government has earned a total of Rs 11,340.78 crore from this spectrum auction. The government expected to get Rs 96,238 crore from the spectrum auction but it got only 12 per cent.
