Indian telecom operators are expected to gradually increase rates to recover Rs 1.1 lakh crore they bid for spectrum in the auction that concluded last week, Moody's said on Monday. "This high cost is credit negative for the country's telecom operators because it will increase their debt and costs and reduce their ability to fund future expansion," said the global credit rating agency. "Although we expect that the companies will raise tariffs in an effort to recover their spectrum costs, we believe the increases will be gradual, leaving the companies' debt levels bloated for some time," Moody's said in its March 30 issue. Telecom Minister Ravi Shankar Prasad, however, had said recently that as per an analysis shared with him by an expert, "the yearly load on telecom operators is going to be about Rs 5,300 crore...And 1.3 paise per minute call". Moodys also said that the growing demand for 3G data services will continue to drive companies' spectrum cost recovery and it expects operators to maintain rational pricing, rather than cutting prices in an effort to increase volumes quickly. Government received total payment commitment of Rs 1,09,874.91 crore from seven leading telecom operators in spectrum auction which ended on March 25.