Reacting to the Trai's proposed higher-than expected auction base price for 2G spectrum, Nomura Equity Research said: "Not many Indian telecom companies have the financial capacity to bid aggressively. Setting higher reserve prices are likely to make economics and operator strategies far more challenging."
It further said the incumbents should fare relatively better given their large scale and balance sheets, but these measures, if accepted, are likely to put a greater cash burden on the telecom sector as a whole.
The telecom regulator today proposed a steep minimum price for auction of 2G telecom spectrum, setting off fears of a hike in mobile phone tariffs which are at present among the cheapest in the world.