Spectrum auction Day 1: Government gets bids of Rs 39300 crore - Economic Times

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NEW DELHI: India's latest spectrum auction got off to a tremendous start on Monday. Telecom operators put in bids worth around Rs 40,000 crore on day one of the auctions as a fierce contest got underway in the 900 Mhz band in Delhi, Kolkata and Mumbai with Bharti Airtel and Vodafone India fighting to protect their turf against an aggressive challenge from Reliance Jio Infocomm.

The first day's bid levels - the minimum the government can mop up - came against its expectations of raising at least Rs 11,300 crore from the auctions alone, and nearly Rs 40,000 crore from the sale, one-time spectrum levy and annual licence fee put together.

Eight mobile phone companies are bidding for 385 Mhz of airwaves in the 1800 Mhz band and 46 Mhz in 900 Mhz band in the long-anticipated auction which began at 9 am on Monday and went on for seven rounds, ending for the day at 7:30 pm. Reliance Communications, Uninor, Tata Teleservices and Aircel are also in the fray, though analysts don't see them as aggressive bidders but looking more to plug their coverage gaps.

Bharti Airtel and Vodafone India have near-survival stakes in the auction as their spectrum in the 900 Mhz band is up for bidding, after the Centre refused to extend their licences in the circles of Mumbai, Delhi and Kolkata beyond the 20-year term which ends in November this year.

STRONG ACTIVITY IN 900 MHZ BAND

Bharti Airtel's mobile permits are to expire in the circles of Delhi and Kolkata. Vodafone India's licences are due to end in the Delhi, Mumbai and Kolkata circles.

"There was strong activity in the 900 Mhz band in all three circles," a senior telecom department official told ET. Bid levels for Mumbai ended the first day 44% higher than the base price of Rs 328 crore and Kolkata bid levels closed 39% higher, while it was 19% higher than the starting level for Delhi, government data on the auctions showed at the end of day one.

The government is set to garner more than Rs 16,800 crore from the three circles alone - the combined bid levels at the end of the day - which is much higher than the Rs 12,875 crore cumulative base price.

For 1800 Mhz spectrum, the government saw excess demand mainly in UP-West, Bihar and West Bengal among the 22 circles that were being bid for, the official said. This was in line with wide expectations of moderate demand for this band, given the ample supply of airwaves.

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