GOVT RECEIVES ₹77,146 CRORE WORTH OF BIDS ON SPECTRUM AUCTION’S DAY 1
NEW DELHI: India’s first auction of spectrum in five years attracted ₹77,146 crore of bids on the opening day on Monday with Reliance Jio, Bharti Airtel and Vodafone Idea putting in bids.
Over 2,250 MHz of spectrum, that carry telecom signals, in seven bands worth nearly ₹4 lakh crore at reserve or start price, was offered for bidding in the auction that began on Monday. Telecom minister Ravi Shankar Prasad said ₹77,146 crore worth of spectrum was bid on the first day but there were no takers for the airwaves in the premium 700 and 2500 MHz bands. The auction, he said, will continue on Tuesday.
Bids were received in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands.
About one-third of the spectrum being auctioned is in the 700 MHz band, which was completely unsold during the 2016 auctions. This, analysts said, was mostly because operators are unlikely to diversify into a new spectrum band that would require incremental investment in equipment, when other subGHz bands are available at lower prices.
The current auction does not include frequencies in 3,300-3,600 Mhz bands that were identified for 5G services, which will happen later.
Successful bidders can pay entire bid amount in one go (upfront), or exercise an option to pay a certain amount (25% for spectrum won in 700 MHz, 800 MHz, 900 MHz bands or 50% for spectrum won in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront with the remaining amount in a maximum up to 16 EMIs, after a moratorium of two years.
Spectrum will be offered for assignment for a validity period of 20 years. Reliance Jio, Bharti Airtel and Vodafone Idea had submitted a total earnest money deposit (EMD) of ₹13,475 crore for the spectrum auctions.