Substantial Industry interest in 800 MHz, 900 MHz, and 2300 MHz bands
No bids for spectrum in 700 MHz and 2500 MHz bands
New Delhi: Pursuant to the Notice Inviting Applications (NIA), auction of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands commenced at 10 AM on March 1, 2021 and four rounds of bidding took place till 6 PM. Another one or two rounds are expected today before its conclusion, the Ministry of Communications, stated.
The Ministry informed that three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm – were participating in the auction. The value of the spectrum for which there were provisional winning bids was Rs. 77,146 crore. “This has already substantially exceeded pre-bid estimates of Rs. 45,000 crore,” the Ministry said. Bidder-wise details of quantity won and amounts payable will be available only after conclusion of the auction, it added.
Also read: Spectrum auction concludes with total bids for Rs 77,814.80 crore
The e-auction is based on Simultaneous Multiple Round Ascending Auction (SMRA) methodology. Available spectrum in all bands is simultaneously put to auction in all the Licensed Service Areas (LSAs). Bidding took place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands, and the participants did not bid in 700 MHz and 2500 MHz bands.
It may be mentioned that a total of 2308.80 MHz spectrum is being put to auction, out of which there had been bids for 849.20 MHz so far. Excluding spectrum in 700 MHz and 2500 MHz bands, this was almost 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 so far are 37% and 19% respectively, with 3 participants.
Spectrum which will be assigned to the successful bidders is valid for 20 years.
In 700 MHz, 800 MHz, and 900 MHz bands, bidders were required to pay 25% of the final bid amount as upfront payment. In the rest of the bands, bidders were required to make payment of 50% of final bid amount upfront. The balance amount (after upfront payment) would be payable in 16 equated annual instalments after a moratorium of 2 years.
– global bihari bureau
