The bids for 5G airwaves inched up by Rs 1.69 billion on third day of the 5G spectrum auctions. Day 3 of the 5G spectrum auctions witnessed healthy bidding for 1800 MHz in Uttar Pradesh (UP) East and action in the mid band or C-band (3.3-3.67 GHz) and high band (26 GHz) spectrum across geographies has been spilled to a fourth day. Consequently, the price for the band in the UP East circle has risen to around Rs 1.13 billion, up around 25 per cent from its base price of Rs 910 million.
The government has netted Rs 1,496.23 billion at the end of the 16th round the third day of the 5G spectrum auctions, with the incremental gains coming entirely from the price increase in UP East. Telcos had bid for airwaves worth Rs 1,494.54 billion at the end of day two proceedings. UP East has the highest number of subscribers in India at 101.54 million, almost 10 per cent of India’s total wireless subscriber base as of May 2022, as per the data by Telecom Regulatory Authority of India (TRAI), making it a highly lucrative circle.
As per the information from the sources, the third day of the auction proceedings witnessed all bidding action in 1800 MHz in the UP-East circle. The 1800 MHz airwaves are vital along with mid band, for the older carriers as they may face serious challenges in defending market share in UP (East) with Jio likely to have got the coveted 700 MHz spectrum in this most populous market.
As of now, Airtel has the highest subscriber base in the UP East circle with 37.46 million users, followed by Jio with 32.92 million users, Vi with 20.23 million, and Bharat Sanchar Nigam Limited (BSNL) with 10.91 million. However, Jio has the highest revenue market share (RMS) of 48.2 per cent, with Airtel a close second at 39.9 per cent.
Based on the third day proceedings of the 5G spectrum auctions, Ashwini Vaishnaw, Union Minister of Communications, Electronics and Information Technology, addressing a press briefing noted that the industry is committed to taking services to rural areas. However, the minister project did not project the likely end date of the ongoing spectrum auctions.
The third day of the spectrum auctions also witnessed some demand for 1800 MHz spectrum in the Andhra Pradesh, Gujarat, Himachal Pradesh, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Orissa and Rajasthan circles as well. There was also demand for the C band and the high band across circles. However, the prices did not fluctuate across any of these bands and circles as there was excess supply. Besides, two circles, Assam and Jammu and Kashmir, also saw demand for the 900 MHz band while there were some takers for the 2100 MHz band in the Delhi, Gujarat and Karnataka service areas. Meanwhile, the 2500 MHz band saw demand only in Andhra Pradesh.
