'Airtel to reduce spectrum auction budget for 2 years'

The telco reported a 38% drop in net profit to ₹1,341 crore for the quarter ended 30 Sep

- Gulveen Aulakh

Bharti Airtel will be spending much less on the upcoming spectrum auctions and subsequent sales over the next couple of years, as it does not require additional airwaves, but will renew spectrum in a few circles, managing director Gopal Vittal said during the earnings call on Wednesday.

“I would not imagine that the company needs further spectrum for some time to come. The only place where some small chunks of spectrum may be needed is renewable spectrum in three or four circles, but it is a function of the traffic pattern. How much do we need? Do we need it at all? Those discussions are still underway."

The top executive of the Sunil Mittal-promoted carrier said that a strategy for the upcoming auctions will be in place once they're announced. The government intends to hold the next spectrum sale by March 2024.

Vittal said capital expenditure on 4G and 5G, which has been advanced significantly in FY24, will moderate starting FY25 as a majority of its rollout will be completed by March. “The real place where capex will cool off will be around radio and, therefore, you should see a capex moderation in the coming year."

Vittal said capex on data centres, home broadband and transport will remain at elevated levels.