Spectrum auction response up marginally on day 2

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The government received total commitments of Rs 56,792 crore from telecom operators at the end of bidding on Day 2 of India’s biggest spectrum auction on Monday while again there were no takers for 700 MHz and 900 MHz bands, according to data by the Department of Telecommunications.

There were fresh six rounds of bidding, and the total rounds now stood at 11.

The majority of activities were seen in the 1800 MHz band. The maximum bids of 81 were received for Assam circle with a provisional winning amount of Rs 8 crore per block. However, it saw 18 less bids. The second highest bids (also in same band) – 62 – were received for Jammu and Kashmir with a provisional winning amount of Rs 2.60 crore per block. However, this circle also saw 98 less bids.

In 1800 MHz, aggregate demand was good in Mumbai circle with 50 bids. It saw excess demand of 25.

700 MHz no takers

800 MHz

Gujarat 393.21
Punjab 148.75
Rajasthan 255
Uttar Pradesh (East) 273.75

900 MHz no takers

1800 MHz

Andhra Pradesh 48.60
Assam 8.00
Bihar 12.40
Delhi 79.80
Gujarat 47.60
Haryana 9.86
Himachal Pradesh 3.20
Jammu & Kashmir 2.60
Kerala 16.60
Kolkata 30.23
Madhya Pradesh 16.60
Maharashtra 63.60
Mumbai 82.74
North East 2.20
Punjab 15.40
Rajasthan 18.38
Uttar Pradesh (East) 23.69
Uttar Pradesh (West) 20.06
West Bengal 9.20

2100 MHz

Bihar 430.00
Delhi 2770.00
Jammu & Kashmir 55.00
Kerala 885.00
Maharashtra 1705.00
Odisha 190.00
Punjab 455.00
Rajasthan 700.00
Tamil Nadu 1720.00
Uttar Pradesh (East) 550.00

2300 MHz

Andhra Pradesh 680.00
Assam 20.00
Bihar 60.90
Delhi 1430.00
Gujarat 546.79
Himachal Pradesh 10.00
Karnataka 980.00
Kerala 173.08
Kolkata 330.00
Madhya Pradesh 81.60
Maharashtra 621.26
Mumbai 1460.00
North East 10.00
Odisha 40.00
Tamil Nadu 1320.00
West Bengal 50.00

2500 MHz

Delhi 1430.00
Gujarat 390.00
Kerala 160.00
Kolkata 330.00
Maharashtra 580.00
Mumbai 1460.00
Rajasthan 60.00
Uttar Pradesh (East) 90.00
Uttar Pradesh (West) 120.00
West Bengal 50.00

Day 1 saw over Rs 53,000 crore commitments from telecom operators after five rounds of bidding.

The companies participating in the auction are Bharti Airtel, Vodafone India, Reliance Jio Infocomm, Reliance Communications, Idea Cellular, Aircel and Tata Tele — who have together furnished a total earnest money of Rs 14,653 crore.

Surprisingly, the 700 MHz band, meant predominantly for 4G (LTE) services which will support broadband data, as well as Internet Protocol telephony such as voice over LTE network — measures that can bring major cost benefits to customers — went without bids.

In the Delhi circle, the reserve price for 700 MHz is pegged at Rs 1,595 crore per MHz — which is the highest — and for pan-India, it is Rs 11,485 crore per MHz.

The 2,300-plus MHz of airwaves on the block for telecom operators are in seven bands — 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz and 2,500 MHz. In the previous auction, 470.75 MHz was on offer, which was set to fetch the exchequer $17 billion during the tenure of licence.

The auction now is central to the government realising the revenue target of Rs 98,994.93 crore that has been provided for in the budget against ‘other communications services’ — the bulk of which is scheduled from the fee paid for spectrum.

The auction timings are from 9 a.m. to 7.30 p.m., Monday to Saturday.

For the auctions — which will be an Internet-based, online process — the government has hired the services of mjunction services.

The government has decided to allot the right to the spectrum won through auction for 20 years.

The operators will have the choice of both upfront and instalments payment options. The service providers who win airwaves below 1 GHz bandwidth will have to pay 25 per cent upfront, and for those winning above that, the upfront payment will be 50 per cent.

For the successful bidder, the lock-in period of equity in the company has been reduced to one year instead of the earlier stipulation of a minimum period of three years or completion of roll out obligation, whichever is later.

IANS

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