Spectrum auction concludes; response better than expected

Total bids for Rs 77,814.80 crore, Total quantity of spectrum for which right to use acquired is 855.60 MHz

GN Bureau | March 2, 2021


#department of telecommunications   #auction   #specturm   #Telecom   #DoT   #ministry of communications  
(Illustration: Ashish Asthana)
(Illustration: Ashish Asthana)

India on Tuesday concluded the spectrum auction after a total of six rounds of bidding. The authorities described the response as better than expected, with total bids valued at Rs 77,814.80 crore. The quality of service and customer experience is expected to improve with deployment of additional spectrum acquired in networks of telecom service providers.

“The value of the spectrum for which there are winning bids is Rs 77,814.80 crore. Hence, incremental bids for Rs 668.20 crore were made today,” said Anshu Prakash, secretary, department of telecommunications, ministry of communications. Tuesday was the second and concluding day of the spectrum auction 2021. The e-auction was based on Simultaneous Multiple Round Ascending Auction (SMRA) methodology.

The secretary said that the bidding took place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. The total quantity of spectrum for which right to use has been acquired in these bands is 855.60 MHz. The participants did not bid in 700 MHz and 2500 MHz bands. Four rounds of bidding (two each with stipulated activity levels of 80% and 90%) took place on Monday and two rounds of bidding with stipulated activity level of 100% took place Tuesday.

Three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance JioInfocommLtd – participated in the auction. Bidder-wise details of quantity of spectrum acquired and amounts payable are as follows:
Bharti Airtel Ltd: Total quantity: 355.45 MHz, Total amount: Rs 18,698.75 crore
Vodafone Idea Ltd: Total quantity 11.80 MHz, Total amount: Rs 1,993.40 crore
Reliance JioInfocomm Ltd: 488.35 MHz, Total amount: Rs 57,122.65 crore

A total quantity of 2308.80 MHz spectrum was put to auction, including spectrum that is expiring up to December, 2021. Of this quantity, bids were received for855.60MHz of spectrum. Excluding spectrum in 700MHz and 2500MHz bands, this is about 60% of the spectrum put to auction. In the 2016 spectrum auction, where there were 7 bidders, the spectrum sold was 41% by quantity and 12% by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction are 37% and 19% respectively, with three participants.

Spectrum Usage Charges (SUC) for the spectrum acquired in this auction will be payable at the rate of 3% of Adjusted Gross Revenue (AGR) of the licensee, excluding revenue from wireline services. The auction is concluded and these provisional results are subject to scrutiny and approval by the Government.

With the deployment of additional spectrum acquired in this auction in the networks of telecom service providers, the quality of service and customer experience of telecom consumers across the country are expected to improve.
 

Comments

 

Other News

Taming turbulence in Indian aviation

The booming Indian aviation industry, among the fastest growing sectors in the world, is projected to be valued at $40 billion by 2027. But, despite robust demand for air travel across the country, more than 50 airlines have closed down in the last decade in India and most private airlines have closed with

PM Modi leaves for G7 Summit in Italy

In his first foreign visit after taking oath of office for the third time, prime minister Narendra Modi Thursday evening left for Italy to participate in the G7 Outreach Summit. “At the invitation of Prime Minister Giorgia Meloni, I am travelling to Apulia region in Italy to participat

Some market talk, some gossip – learnings over tea at RBI

A Fly on the RBI Wall: An Insider’s View of the Central Bank By Alpana Killawala Rupa Publications, 248 pages, Rs 595  

Coalition politics not expected to impact India’s foreign policy

Prime minister Narendra Modi has strived incessantly to bring laurels and much needed recognition for the nation since May 2014 when he was sworn in as the head of state. The poser which can be deliberated upon is this: What will be the consequential impact of the new era of coalition politics which confro

New govt`s first decision pushes for farmer welfare

The BJP-led NDA government has started its term with its first decision relating to farmer welfare. Narendra Modi took charge of office as prime minister of India for the third time on Monday, a day after he and his colleagues were sworn in by the president of India. In his fi

Narendra Modi takes oath for third term

Narendra Modi made history Sunday evening as he was sworn in by president Droupadi Murmu for a third successive term. Modi thus becomes the first prime minister since Jawaharlal Nehru to have comptered two full terms and beginning a third consecutive term. In the swearing-in c

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter