Eight telecom operators – with Mukesh Ambani-promoted Reliance Jio Infocomm the highest — have jointly submitted earnest money deposit of about Rs 20,435 crore for spectrum auction.
A PTI report said that the earnest money deposits translate into points that determine the quantum of spectrum blocks a company can bid in the auction process.
# Reliance Jio Infocomm Rs 4,500 crore
# Bharti Airtel Rs 4,336 crore
# Idea Cellular Rs 4,000 crore
# Vodafone Rs 3,700 crore
# Tata Teleservices Rs 1,500 crore
# Reliance Communications Rs 1,175 crore
# Uninor Rs 724.95 crore
# Aircel Rs 500 crore
The presence of Mukesh Ambani is the spectrum auction is likely to escalate the auction price. The March 2015 spectrum auction is important for Reliance Jio Infocomm because they are looking at adding voice services buying the airwaves.
The spectrum they acquired during 2010 and 2014 will be used for 4G – TD-LTE and FD-LTE services. Reliance Jio Infocomm has already invested around Rs 20,000 crore to run its telecom venture, but yet to see the result.
Reliance Jio may be looking at 900MHz band.
The government expects to generate more than Rs 80,000 crore from the sale of spectrum that will assist telecoms to offer 2G and 3G services.
Proceeds from this year’s auction are expected to help the government meet its fiscal deficit target of 4.1 percent of the GDP.
2100MHz band or 3G spectrum is likely to generate at least Rs 17,555 crore, while 2G spectrum in 800MHz, 900MHz and 1800MHz bands will fetch the government at least Rs 64,840 crore.
editor@telecomlead.com
