India's carriers need to find ways to foot bill for spectrum

New Delhi

CALLERS used to paying less than one cent a minute in India may get a jolt from their monthly bills after the nation's mobile-phone companies agreed to spend US$18 billion buying airwaves from the government.

Seven of the country's wireless carriers need to find ways to foot the bill for spectrum bought during a 19-day auction that concluded last week. As much as a third of their bids must be paid by next week, with the rest being due in instalments starting in two years.

India has 900 million wireless subscribers and is home to the fastest-growing major market for smartphones. Carriers including Bharti Airtel Ltd, Vodafone Group plc and Idea Cellular Ltd generate most of their revenue from voice calls, making it likely the carriers will use small price increases to help pay for the airwaves and necessary netw…