India’s recent spectrum auction wrapped up on June 26, concluding on its second day as telecom companies acquired spectrum worth ₹11,340 crore.
This figure represents 12 percent of the ₹96,238 crore minimum value the government had anticipated for the available spectrum. The result of the spectrum auction indicates that Indian telecoms are not ready to buy spectrum at high prices.
The auction featured 10 GHz of spectrum across various bands, ranging from 800 MHz to 26 GHz. The first day saw five bidding rounds, while limited activity on the second day led officials to close the auction early by 11:30 am.
Airtel leads
Telecom giant Bharti Airtel emerged as the highest bidder, securing 97 MHz of spectrum — around 60 percent of the total airwaves sold across the 900 MHz, 1800 MHz, and 2100 MHz frequency bands for a total of ₹6,857 crore. This acquisition includes renewing spectrum set to expire in 2024 and additional spectrum to strengthen its mid-band holdings in key circles, according to a press release by Bharti Airtel.
Vodafone Idea announced the acquisition of 50 MHz of spectrum across low band and mid band spectrum (900 MHz, 1800 MHz and 2500 MHz) in 11 circles for ₹3,510 crore, in the spectrum auction concluded today.
Reliance Industries’ Jio Infocomm is to report their specific purchases. Mukesh Ambani-promoted Jio has purchased spectrum worth ₹973 crore, according to our calculations.
The first auction under the Narendra Modi Government 3.0 indicates that Airtel’s dominant position in this auction.
Given the high availability of spectrum and regulatory caps designed to limit aggressive bidding, telecom companies saw limited need to make substantial expenditures. The acquired spectrum will carry a fixed interest rate of 8.65 percent on 20-year EMIs.
Notably, no bids were received for the 800 MHz, 2300 MHz, 3300 MHz, and 26 GHz bands, as reported by Motilal Oswal Financial Services.
Baburajan Kizhakedath