But few analysts have played down the impact of the Telecom Regulatory Authority of India recommendations.
Citibank claims the hit could be minimal and operators might not have to make dramatic increases in call rates to nullify the effect of high base prices.
"It is worth noting that telcos are advocating an 80 per cent reduction in Trai's proposed base price. Our analysis shows because of deferred spectrum payments, hikes required are staggered and small ie, two per cent annually through 2025-26," Citibank stated in a report.
The report stated operators would have a strong case for call rate increases, and the high reserve price could restrict their bidding intensity, as well.
Apart from high base prices, Trai also gave a provision to telcos to make deferred payments of spectrum fee.
"We believe, based on current recommendations of deferred payments, the net present value for spectrum payouts constitutes roughly one-third of the total payments," stated a report by Morgan Stanley.
The report lauded clarifications sought by the department of telecommunications on the recommendations.
After Trai's response to these clarifications, the matter would be
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