New Delhi, The auction for spectrum worth Rs 96,238 crore began on Tuesday and companies like Airtel and Reliance Jio are expected to bid to acquire radio waves that will help boost their 5G services.
This is the tenth spectrum auction since the process of selling radio waves began through an online bidding process in 2010.
"The government begins the auction of Spectrum for Telecommunications Services today at 10:00 a.m.," an official statement said on Tuesday.
In August 2022, the last spectrum auction was held, which, for the first time, included radio waves for 5G services.
"To augment the existing telecom services and maintain continuity of services, the government will conduct the spectrum auction on Tuesday, June 25, 2024. This is in line with the government's commitment to facilitate affordable telecom services, of latest generation and high quality for all citizens," the statement says.
The Department of Telecommunications (DoT) started the spectrum auction and a notice inviting applications (NIA) was issued on March 8.
"The Ministry of Communications announced that in the next auction the following spectrum bands will be auctioned: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz. The total amount of spectrum is being auctioned is 10,522.35 MHz in various bands worth Rs 96,238.45 crore at reserve prices," the statement said.
The 3300 Mhz band and the 26 Mhz band are considered suitable bands for 5G services.
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.
Telecom industry body Association of Indian Cellular Operators Director General SP Kochhar said the 5G auctions will catalyze rapid rollout of 5G services across the country, leading to increased Vastly improved coverage and connectivity.
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.
This is the tenth spectrum auction since the process of selling radio waves began through an online bidding process in 2010.
"The government begins the auction of Spectrum for Telecommunications Services today at 10:00 a.m.," an official statement said on Tuesday.
In August 2022, the last spectrum auction was held, which, for the first time, included radio waves for 5G services.
"To augment the existing telecom services and maintain continuity of services, the government will conduct the spectrum auction on Tuesday, June 25, 2024. This is in line with the government's commitment to facilitate affordable telecom services, of latest generation and high quality for all citizens," the statement says.
The Department of Telecommunications (DoT) started the spectrum auction and a notice inviting applications (NIA) was issued on March 8.
"The Ministry of Communications announced that in the next auction the following spectrum bands will be auctioned: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz. The total amount of spectrum is being auctioned is 10,522.35 MHz in various bands worth Rs 96,238.45 crore at reserve prices," the statement said.
The 3300 Mhz band and the 26 Mhz band are considered suitable bands for 5G services.
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.
Telecom industry body Association of Indian Cellular Operators Director General SP Kochhar said the 5G auctions will catalyze rapid rollout of 5G services across the country, leading to increased Vastly improved coverage and connectivity.
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.
