The government has received bids worth about Rs 112.6 billion after five rounds of auction on the first day of India’s second 5G spectrum sale, with several bids for the 900 MHz, 1800 MHz and 2100 MHz bands exceeding the base price.
According to data by the Department of Telecommunications (DoT), Bharti Airtel and Vodafone Idea Limited (Vi) primarily focused on two specific bands (900 MHz and 1800 MHz) in the circles where they face spectrum renewals. Bharti Airtel faces 900/1800 MHz renewals in six circles, including Jammu and Kashmir, Odisha, Bihar, Uttar Pradesh (UP) East, West Bengal, and Assam. Meanwhile, Vi’s permits will end in 2024 in UP West (for 900 MHz) and West Bengal (1800 MHz).
Bids were above the base price for the 1800 MHz band in Bihar, West Bengal, Madhya Pradesh, and UP East. Meanwhile, the offers were above the reserve price for the 900 MHz band in Punjab, Rajasthan, UP East and West Bengal, and the 2100 MHz band in Assam, Jammu and Kashmir, and Northeast.
As per the data, Airtel has opted for 1800 MHz spectrum in West Bengal. In addition, Reliance Jio, which put in the highest pre-auction deposit, has likely boosted its airwave holdings in the 1800 MHz band in key markets like Kolkata, Haryana, Punjab, and Rajasthan.
For now, 5G mid-band airwaves (3.3 GHz) and high-band (26 GHz) as well as sub-GHz spectrum in the 800 MHz band have been given a miss on the opening day of the auction. This is mainly since telcos have ample 5G spectrum coupled with the fact that Airtel and Vi mainly focussed on renewals.
The data further indicated that in the 900 MHz band, telcos placed bids for circles of Assam, Bihar, Andhra Pradesh, Jammu and Kashmir, Karnataka, Kolkata, Northeast, Odisha, Tamil Nadu, UP (East) and UP (West). Meanwhile, in the 1800 MHz, Assam, Bihar, Haryana, Kolkata, Odisha, Punjab, Rajasthan, and West Bengal witnessed activity while in 2100 MHz, while UP (West) also saw some demand.
As per DoT, the bid value rose from an initial Rs 102.93 billion after the first round to Rs 112.59 billion by the fourth round, and saw no further rise in the fifth.
Furthermore, the auction will resume on June 26, 2024 from the sixth round onwards.
Commenting on the development, Lt. Gen. Dr. SP Kochhar, Director General, COAI said, “COAI eagerly anticipates the successful completion of 5G spectrum auctions. The 5G auctions will catalyse the rapid rollout of 5G services across the country, leading to enhanced coverage and vastly improved connectivity. Moreover, the successful deployment of 5G will be a major stride towards achieving digital inclusion. By bridging the digital divide, the 5G spectrum auctions will ensure that even the most remote areas of our country gain access to high-speed internet, thereby fostering greater economic opportunities and social advancement. The auctions also symbolise our commitment to ‘Viksit Bharat’ and we are confident that the outcomes of these auctions will lay a strong foundation for a prosperous and digitally empowered India.”
