Telecom operators have placed bids totaling ₹11,000 crore for the spectrum, a modest start given the ₹96,320 crore worth of airwaves available, on the first-day of the spectrum auction in India.
Bidders sought 150 MHz out of the 10,523.2 MHz offered by the government, according to officials. The 900 MHz and 1800 MHz bands garnered the most interest on the first day, with more activity expected in these bands on Wednesday.
Indian telecom operators have committed ₹11,000 crore across five rounds of bidding on day one, primarily in the 900 MHz and 1800 MHz bands, and some interest in the 2100 MHz band, according to news reports.
In 2022, spectrum auction saw record bids of ₹1.5 trillion for 72,097.85 MHz of radio frequencies, driven by the introduction of 5G spectrum.
While the interim budget did not separately specify revenue from spectrum sales, the overall telecom sector revenue is projected at ₹1.2 trillion for FY25.
The Department of Telecommunications reported bidding in the 900 MHz, 1800 MHz, and 2100 MHz bands, with no activity in other bands like 800 MHz, 2500 MHz, 26 GHz, and 3.3 GHz.
In the 1800 MHz band, bidding exceeded the base price in West Bengal, Bihar, Madhya Pradesh, and UP East, expected to account for 70 percent of total bids. Airtel faces renewals in six circles, while Vodafone Idea needs to renew spectrum in UP West. Around 25 percent of bids targeted the 900 MHz band, with additional interest in Assam, J&K, and North East circles in the 2100 MHz band.
Industry experts anticipate competitive bidding for spectrum renewals, potentially extending the auction. Analysts predict about 17 percent of the spectrum value will be sold, the lowest since 2014.
Reliance Jio, Bharti Airtel, and Vodafone Idea collectively deposited ₹4,350 crore as earnest money, enabling them to bid 10-12 times the deposit amount. Reliance Jio, the largest telecom firm in India, contributed ₹3,000 crore, while Bharti Airtel and Vodafone Idea deposited ₹1,050 crore and ₹300 crore, respectively. Unlike Airtel and Vodafone Idea, Reliance Jio does not have spectrum renewals.
TelecomLead.com News Desk