Spectrum auction in India started on Monday, with 2,251.25 megahertz (MHz) radiowaves valued at Rs 3.92 lakh crore up for bidding. The auction entailing seven frequency bands for cellular providers — 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands — is presently underway, business sources mentioned.
The present auction doesn’t embody frequencies in 3,300-3,600 Mhz bands that had been recognized for 5G providers, which is able to occur later.
Successful bidders pays total bid quantity in a single go (upfront), or train an choice to pay a specific amount (25 per cent for spectrum received in 700 MHz, 800 MHz, 900 MHz bands or 50 per cent for spectrum received in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront with the remaining quantity in a most up to 16 EMIs, after a moratorium of two years.
Spectrum can be provided for project for a validity interval of 20 years.
Reliance Jio, Bharti Airtel and Vodafone Idea had submitted a complete earnest cash deposit (EMD) of Rs 13,475 crore for the spectrum auctions.
India’s largest telecom firm Reliance Jio with a networth of Rs 1.79 lakh crore had submitted EMD of Rs 10,000 crore for the auctions, the best among the many three non-public telcos. Market watchers had mentioned that Jio’s EMD quantity indicated its wholesome urge for food for spectrum within the auctions, notably on the again of its swelling subscriber base.
Bharti Airtel with a networth of Rs 71,303 crore has submitted EMD of Rs 3,000 crore and Vodafone Idea with a detrimental networth of Rs 43,474 crore has submitted EMD of Rs 475 crore.
Analysts anticipate the auctions this time to be a low-key affair, and see bids within the vary of Rs 30,000 crore-Rs 50,000 crore for the radiowaves valued at round Rs 3.92 lakh crore at base value.
Some consultants consider that spectrum auction in India has was a purchaser’s market and may even see “minimal competition” with operators going after airwaves that yield the most effective worth for cash as a substitute of specializing in renewing all expiring spectrum.
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