India’s telecom spectrum auction, which commenced on June 25, 2024, witnessed substantial activity focused on renewals and capacity increases, according to Motilal Oswal Research Analyst Tanmay Gupta. The Department of Telecom (DoT) received total bids worth INR 97 billion on the first day of the spectrum auction.
Key Highlights:
Bharti Airtel likely spent approximately INR 54 billion, focusing on the 900MHz, 1800MHz, and 2100MHz bands. The company aimed for renewals in the 900MHz and 1800MHz bands and increased its low-frequency spectrum footprint.
Vodafone Idea (VODAFONE IDEA) seems to have spent around INR 23 billion on the 900MHz, 1800MHz, and 2500MHz bands. Similar to Bharti Airtel, Vodafone Idea targeted renewals in the 900MHz and 1800MHz bands.
Reliance Jio has likely spent about INR 19 billion, mainly on the 1800MHz band, with limited participation on the first day of the spectrum auction.
Spectrum-Wise Bidding:
The 900MHz band attracted bids worth INR 61 billion (63 percent of total bids), primarily for renewals, with no price increase in any circles due to the high availability of spectrum.
The 1800MHz band saw bids totaling INR 29 billion (30 percent of total bids), also mainly for renewals and top-ups.
The 2100MHz and 2500MHz bands had marginal spending of INR 5 billion and INR 1.5 billion, respectively.
No Bids for Certain Bands: There were no bids received for the 800MHz, 2300MHz, 3300MHz, and 26GHz bands.
Detailed Spending Analysis:
Bharti Airtel is estimated to have spent INR 42 billion on 900MHz (41.4MHz across 12 circles), INR 7 billion on 1800MHz (10.2MHz across five circles), and INR 5 billion on 2100MHz (20MHz in four circles).
Reliance Jio was expected to be the highest bidder but showed limited participation with INR 19 billion for 1800MHz (26.6MHz across six circles).
Vodafone Idea likely spent INR 19 billion on 900MHz (14MHz across five circles), INR 3 billion on 1800MHz (4.4MHz in two circles), and INR 1.5 billion on 2500MHz (10MHz in one circle).
Conclusion
The spectrum auction is expected to conclude within 1-2 days, with the high availability of spectrum and fixed interest rates of 8.65 percent on 20-year EMIs reducing the need for aggressive spending. The substantial participation in the 900MHz and 1800MHz bands indicates a strategic focus on renewing and bolstering low-frequency spectrum holdings.
