Spectrum bids cross Rs 77K cr on Day 1, all telcos participate

India's first auction of spectrum in five years attracted Rs 77,146 crore of bids on the opening day with Reliance Jio, Bharti Airtel, and Vodafone Idea participating in the bidding process - a response that the government said was better than expected.

There were, however, no takers for spectrum in 700 MHz and 2500 MHz bands on the first day, and the auctions will continue and conclude on Tuesday.

About 2,308.80 MHz of spectrum, that carry telecom signals, in seven bands worth nearly Rs 4 lakh crore at the reserve or start price, was offered for bidding in the auction that began on Monday.

Communications Minister Ravi Shankar Prasad said Rs 77,146 crore worth of spectrum was bid on the first day but there were no takers for the airwaves in the premium 700 MHz as also 2500 MHz bands. The response from players and the bids received surpassed government's inter nal estimates, that had anticipated bids worth Rs 45,000 crore.

"The winning bids that have come till 6 PM today is Rs 77,146 crore. We thought since there are only three players, and spectrum replacement is happening...our estimation was that the bids will touch about Rs 45,000 crore, but it is a matter of assurance that it has gone as high as Rs 77,146 crore," Prasad said.

The bidder-wise details were not available immediately. A total of 2,308.80 MHz spectrum is being put to auction, out of which there have been bids for 849.20 MHz so far, an official release said.

Bids were received in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands, as players gave the prized 700 MHz band a miss on the first day of auctions.

"Total value of spectrum put to auction was about Rs 4 lakh crore. In this, 700 MHz band was a costly band, and that cost itself is Rs 1.97 lakh crore," the minister said adding that the government will take a call on 700 MHz band, used for 5G, in case it remains unsold in the ongoing auctions.

Excluding 700 MHz and 2500 Mhz bands, the bidding accounted for 60 per cent of the spectrum that was put to auction.

The 700 MHz band went unsold during the 2016 auctions, too. During 2016, when there were seven bidders, the spectrum sold was 41 per cent by quantity and 12 per cent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37 per cent and 19 per cent respectively, with three participants.

Spectrum will be offered for a validity period of 20 years. Successful bidders can pay entire bid amount in one go, or exercise an option to pay a certain amount (25 per cent for spectrum won in 700 MHz, 800 MHz, 900 MHz bands or 50 per cent for spectrum won in 1800 MHz, 2100 MHz bands.