The government on Monday received bids worth around Rs 44,610 crore ($7.12 billion) on the first day of 2G wireless spectrum auction. This is the government's third effort to raise revenue from the sale of airwaves in the last 15 months. The auction saw a promising start with excess demand coming up for the 900 MHz band in the Mumbai circle with the provisional winning amount per block being Rs 473.24 crore at the end of the seventh round of the spectrum auction.
According to sources Bharti Airtel, Reliance Jio Infocomm and Vodafone are the three players fighting hard to win spectrum in select circles. Others such as Tata Teleservices, Telewings and Reliance Communications are following the suit.
For the Delhi circle in the 900 MHz band the provisional bid amount was Rs 428.92 crore per MHz against the reserve price of Rs 360 crore while for the Kolkata circle the provisonal bidding amount was Rs 173.16 crore. However, bidding in the 1800 MHz band are yet to pick up pace with excess demand coming in only for the Gujarat circle. The reserve price for a pan-India licence is at Rs 1,765 crore per MHz, about 26% lower than in the March sale. A total of over 385 MHz of spectrum has been put up for auction in the 1800 MHz band while in the 900 MHz band 46 MHz of spectrum has been put up for auction.
The auction has eight players fighting for the airwaves.
According to experts, while the bidding happened in a judicious and measured way in the 1800 MHz band, presence of biggies in the 900 MHz made it aggressive.
"Judicious and measured bidding took place on the first day of the third round of the 2G spectrum. However this not even close to the 3G or BWA auctions," an industry expert said.
"Bids were received in all 22 service areas in 1800 MHz band and in all three services areas in 900 MHz band but the value additions to take the bid forward were much less than what the operators had been putting forward in the 3G or BWA auctions," he added.
Speaking to dna Rajan Matthews, director-general, COAI, said: "It may be pure speculation that Reliance Jio Infocomm will bid aggressively in the 900 Mhz band, as it may be more rational for their strategy to only bid for 1800 Mhz spectrum. Idea Cellular may bid aggressively for 900 MHz spectrum as it may be quite interested in the Mumbai circle, which fits in well with its Maharashtra circle footprint aspirations."
Another expert who denied to be named said, "It is not surprising to see the auctions catching pace right on the first day. The level of participation was expected to be high because there is so much on stake. Leading players have to get their spectrum back."
"New entrants want enough spectrum so as to launch its services in areas they do not operate in. Plus as compared to previous auction the government has brought in the much needed clarity in some of the key issues so that has added to the demand." he added.
Talking about Reliance Jio he said that they will be a little aggressive as they plan to offer voice so they want to have some amount of liberalized spectrum.
"The auctions will go on for a while now," said an expert denying any speculation that this will be another failed spectrum auction.
Altogether eight players have participated in this auction. While Bharti Airtel, Aircel, Idea Cellular, Reliance Jio Infocom and Telewings are the operators who are particpating in all the circles.
Vodafone, Tata Teleservices and Reliance Communications are bidding only in select circles.
Highlights of the 1,800 MHz and 900 MHz spectrum auction that kicked off on Monday. —Compiled by Cogencis
Telecom cos bidding for all circles in 1,800 MHz bandwidth
Cos bidding for Delhi, Mumbai, Kolkata circles in 900 MHz
First round of telecom spectrum auction ends
Got bids in all telecom circles put up for auction
Cos bid for Delhi circle 88 blocks for 1,800 MHz
Auction seeing excess demand for 900 MHz spectrum
Second round of telecom spectrum auction ends
Third round of telecom spectrum auction underway
Cos bid for 17.4 MHz spectrum for Mumbai in 1,800 Mhz band
Bidding seen more for 900 MHz spectrum than 1800 MHz so far
Fourth round of telecom spectrum auction underway
Fifth round of telecom spectrum auction underway
Bidding on for 1,800 MHz spectrum in Bihar, Gujarat circles
Excess demand for 1,800 MHz spectrum in Bihar, Gujarat
Bidding on for 1,800 MHz spectrum in Uttar Pradesh (W)
Bidding also on for 1,800 MHz spectrum in West Bengal
Excess demand for 1,800 MHz band in Uttar Pradesh (West)
Excess demand for 1,800 MHz spectrum in West Bengal circle
Fifth round of telecom spectrum auction concludes
Bids worth over Rs 14,000 cr so for in entire 900 MHz band
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