OUT OF RS 4 L CR OF SPECTRUM ON SALE, ONLY RS 77,814 CR SOLD
MUMBAI: India's first auction of telecom spectrum in five years ended on Tuesday with Rs 77,814.80 crore of airwaves being bought, mostly by billionaire Mukesh Ambani's Reliance Jio.
Over 2,250 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.
Telecom Secretary Anshu Prakash said 855.60 MHz of spectrum was bought for Rs 77,814.80 crore in the two-day auction.
Reliance Jio bought Rs 57,122.65 crore worth of spectrum while Vodafone Idea Ltd picked Rs 1,993.40 crore worth of airwaves.
Bids were received in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands but there were no takers for the airwaves in the premium 700 and 2500 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 sub-GHz bands are available at lower prices.
Telecom operator Vodafone Idea (now rebranded as Vi) said on Tuesday that spectrum acquired by it in five circles will help boost 4G coverage and capacity.
"We have used this opportunity to optimise spectrum holding postmerger to create further efficiencies in few circles," he said.
Spectrum auctions, which put on offer a total of 2308.80 MHz of spectrum worth Rs 4 lakh crore in seven bands -- ended on Tuesday.
The government said response was better than expected. With the telecom industry gearing up for 5G play, Vi hoped that large quantum of spectrum in globally harmonised bands will be made available for all operators in the future at fair prices.