The Department of Telecommunications (DoT) has revealed that between 2010 and 2024, it put spectrum worth Rs 17.23 trillion (at reserve price) under auction but managed to sell only Rs 5.64 trillion, leaving nearly Rs 11.6 trillion worth of airwaves unsold. This translates into an overall revenue efficiency of just 32.7 per cent.
According to the DoT’s analysis, the success of the 2010 3G auction, where the winning price-to-reserve price ratio touched 5.34, inflated expectations in later years. Over time, high reserve prices acted as ceilings, leading to unsold inventory and opportunity losses in both revenue and consumer welfare.
From 2010 to 2024, nine auctions offering 818 spectrum blocks across 22 service areas were conducted. Nearly half (48.8 per cent) of the offerings attracted no buyers. Of the rest, 15.5 per cent sold above reserve price while 35.8 per cent cleared at the base price.
The study noted that while the 2010-2015 period was marked by strong competition with up to 10 active bidders, the landscape shifted post-2016 due to market consolidation and spectrum sufficiency. By then, only three players were consistently participating in auctions, except in 2022 when the Adani Group joined Reliance Jio, Bharti Airtel, and Vodafone Idea Limited in the 5G auction.
The analysis recommended recalibrating the reserve price mechanism to align with operator financial capacity, demand trends, and macroeconomic conditions. It also suggested re-auctioning unsold spectrum at revised prices instead of carrying it forward repeatedly, alongside publishing a forward-looking spectrum release plan covering the next five to ten years.
