Telecom operators have submitted earnest money deposits (EMD) of Rs 210 billion for the upcoming spectrum auctions scheduled for March 2015. The telecom operators submitted EMD in the form of bank guarantees with the DoT in order to participate in the auctions. The EMD varies between 16-25 per cent of the reserve price in a circle.
Reliance Jio Infocomm Limited (RJIL) has submitted the maximum EMD at Rs 45 billion, followed by Bharti Airtel with Rs 43.36 billion. Idea Cellular has deposited Rs 40 billion while Vodafone has submitted EMDs to the tune of Rs 37 billion. It is expected that these operators are likely to bid aggressively for spectrum in the 900 MHz and 2100 MHz band.
Tata Teleservices has deposited EMD of around Rs 15 billion while Telewings Communications (Uninor), Aircel and Reliance Communications have deposited EMD of around Rs 10 billion each.
While Bharti Airtel and Vodafone have to buy back spectrum in the 900 MHz band as their licenses (six of Airtel and seven of Vodafone) are coming up for renewal in 2015-16. Idea?s licences in nine circles are coming up for renewal, while Reliance Telecom has to renew licences in seven circles in 2015-16. RJIL is likely to bid in the 1800 MHz band as well as 900 MHz spectrum band.
