There are no takers for 3G spectrum in the 2,100 MHz band in key telecom circles across the country going by the demand during the ongoing spectrum auction in India.
Two factors — high reserve price at Rs 3,705 crore per MHz for the 2,100 MHz spectrum and limited availability of 5 MHz – are negatively impact the 3G spectrum demand.
The government has set Rs 3,705 crore per MHz for 3G spectrum against Rs 3,646 crore per MHz for 800 MHz, Rs 3,980 crore for 900 MHz band pan-India, Rs 2,191 crore for 1,800 MHz band.
The government is currently auctioning 103.75 MHz in 800 MHz band, 177.8 MHz in 900 MHz band and 99.2 MHz in 1,800 MHz band for 2G services and 5 MHz in the 2,100 MHz band for 3G services. Today will be the fifth day of spectrum auction. On day 4 of spectrum auction, the bid value crossed Rs 86,000 crore.
3G spectrum available in telecom circles such as Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Odisha, Tamil Nadu, Uttar Pradesh (East) and Uttar Pradesh (West) did not get any response till now.
On the other hand, telecom circles such as Assam, North East and Rajasthan received bids for 3G spectrum license.
In fact, COAI, the telecom industry body for GSM operators such as Airtel, Idea Cellular, Vodafone, etc. earlier warned that the 3G spectrum price is too high and it could impact the bidding.
Baburajan K
editor@telecomlead.com