New Delhi: Spectrum worth over Rs 96,000 crore will be sold as auctions in eight bands begin on Tuesday, with telecom operators Reliance Jio, Bharti Airtel and Vodafone Idea vying for airwaves crucial for services 5G mobiles.
In August 2022, the last spectrum auction was held, which, for the first time, included radio waves for 5G services.
The government will auction eight spectrum bands for mobile services at a base price of approximately Rs 96,317 crore.
All spectrum available in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz bands are part of the tenth auction.
"We welcome the government's initiative to auction radio frequencies in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz bands. However, spectrum should also be auctioned in 600 MHz and 1,400 MHz at an early date as these bands are very important for the mobile industry," said ITU Foundation India President Bharat Bhatia.
Reliance Jio has posted the highest collateral of Rs 3,000 crore for the spectrum auction, giving the company the potential to bid for maximum airwaves.
According to the shortlisted bidder details released by the Department of Telecom, Bharti Airtel has submitted an earnest money deposit (EMD) of Rs 1,050 crore and Vodafone Idea (VIL) of Rs 300 crore.
According to telecom expert Parag Kar, Reliance Jio can bid for 37.36 per cent of the total spectrum value according to EMD, Bharti 13.07 per cent and Vodafone Idea 3.73 per cent.
According to Kar's analysis, Jio may be interested in bidding only for the 800 Mhz band, which can generate an estimated cash flow of Rs 18,000 crore.
"Bharti's specific focus in the upcoming auction is aimed at consolidating and improving its spectral efficiency. The total output for Bharti will be Rs 11,512 crore at the reserve price," Kar said in his blog.
Debt-laden Vodafone Idea (VIL) is likely to focus on strategic acquisitions, particularly in the 26 GHz band, to reduce its spectrum usage fee.
Citing a market complaint, Shreya Suri, partner at IndusLaw, said Airtel is also looking to add additional sites for 5G coverage. The task will be selective and will largely focus on renewing spectrum for existing sites.
"Vodafone, on the other hand, will potentially reduce coverage in some circles and choose not to renew some of its spectrum," Suri said.
The spectrum auction is likely to have little activity and the bidding will be selective for specific bands.
The 3300 Mhz band may attract the interest of Reliance Jio and Bharti Airtel as it is one of the key bands to provide 5G services with low capex.
Fragments of radio waves ranging from 20 Mhz to -100 Mhz in the 3300 Mhz band are auctioned.
In August 2022, the last spectrum auction was held, which, for the first time, included radio waves for 5G services.
The government will auction eight spectrum bands for mobile services at a base price of approximately Rs 96,317 crore.
All spectrum available in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz bands are part of the tenth auction.
"We welcome the government's initiative to auction radio frequencies in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz bands. However, spectrum should also be auctioned in 600 MHz and 1,400 MHz at an early date as these bands are very important for the mobile industry," said ITU Foundation India President Bharat Bhatia.
Reliance Jio has posted the highest collateral of Rs 3,000 crore for the spectrum auction, giving the company the potential to bid for maximum airwaves.
According to the shortlisted bidder details released by the Department of Telecom, Bharti Airtel has submitted an earnest money deposit (EMD) of Rs 1,050 crore and Vodafone Idea (VIL) of Rs 300 crore.
According to telecom expert Parag Kar, Reliance Jio can bid for 37.36 per cent of the total spectrum value according to EMD, Bharti 13.07 per cent and Vodafone Idea 3.73 per cent.
According to Kar's analysis, Jio may be interested in bidding only for the 800 Mhz band, which can generate an estimated cash flow of Rs 18,000 crore.
"Bharti's specific focus in the upcoming auction is aimed at consolidating and improving its spectral efficiency. The total output for Bharti will be Rs 11,512 crore at the reserve price," Kar said in his blog.
Debt-laden Vodafone Idea (VIL) is likely to focus on strategic acquisitions, particularly in the 26 GHz band, to reduce its spectrum usage fee.
Citing a market complaint, Shreya Suri, partner at IndusLaw, said Airtel is also looking to add additional sites for 5G coverage. The task will be selective and will largely focus on renewing spectrum for existing sites.
"Vodafone, on the other hand, will potentially reduce coverage in some circles and choose not to renew some of its spectrum," Suri said.
The spectrum auction is likely to have little activity and the bidding will be selective for specific bands.
The 3300 Mhz band may attract the interest of Reliance Jio and Bharti Airtel as it is one of the key bands to provide 5G services with low capex.
Fragments of radio waves ranging from 20 Mhz to -100 Mhz in the 3300 Mhz band are auctioned.
