Telecom operators on Monday placed bids worth £7.71 billion in India’s first 4G spectrum auction in more than four years against the government’s expectation of 45,000 crore, communications, electronics and information technology minister Ravi Shankar Prasad said. The department of telecommunications (DoT) aims to raise at least ₹3.92 trillion in the auction of 2,308.8 MHz of spectrum. The auction will continue, the minister said.
All three telecom operators - Reliance Jio Infocomm Ltd, Bharti Airtel Ltd and Vodafone Idea Ltd - which submitted earnest money deposits took part in the auction. The minister said bids were received for radio airwaves in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz and 2,300 MHz bands. Spectrum in the 700 MHz and 2,500 MHz bands remained unsold on day one.
“Bidding will continue. There were three bidders in Tuesday’s auction versus seven players in the 2016 auction. Of the total spectrum put up for sale, bids of £7.71 billion were received,” Prasad said. “Telecom operators seem to have bid marginally higher than I expected. However, it is still a fraction of the total spectrum put up for sale. In case of the 700 MHz band, telcos clearly found its high reserve price a deterrent. This (700 MHz) is a valuable spectrum and if it doesn’t get sold, the government may be forced to lower the prices. The players can afford to wait it seems,” said Mahesh Uppal, a senior telecom expert.
Jio has bid for 800 MHz spectrum which will expire in many circles, and high interest in the 2,300 MHz band, which is predominantly used for 4G in India, indicates that telcos are looking to improve their coverage and service quality, said Uppal. The government received bids for 89% of the 2300 MHz band, while 65% of 800 MHz spectrum was taken. Airwaves in the 900 MHz, 1,800 MHz and 2,100 MHz saw 38%, 41% and 9% bids, respectively.
The minister indicated that the 700 MHz band, which has remained unsold so far, could be used for 5G auction. According to experts, spectrum in the 700 MHz band can support 5G because of its efficiency, which also makes it the most expensive among those put under the hammer.
