According to Jefferies, the earnest money deposits (EMDs) in the Rs 3-30 billion range submitted by the telcos for the upcoming 5G spectrum auction are almost 79-86 per cent lower than the submissions in the previous 5G spectrum auction of 2022. In addition, they are the lowest since the 2014 auction.
The EMDs are indicative of a telco’s bidding strategy and spectrum buying capacity as it gives the applicant eligibility points, based on which it can target a certain quantum of airwaves in select or all available bands in specific or all circles.
Jefferies said in a note that the modest EMDs signal the prospect of selective bidding in the upcoming sale and the government selling at most 21 per cent of the nearly Rs 970 billion (around $12 billion) worth of 5G airwaves on offer.
As per the Department of Telecommunications (DoT) data, in the 2014 auction, telcos had acquired spectrum worth $7.4 billion, and subsequently in the airwave sales of 2015, 2016, 2021 and 2022, the value of spectrum acquired was $13.2 billion, $7.9 billion, $9.4 billion, and $18.1 billion respectively.
