Spectrum Auction Wraps Up Early On Day 2, Rakes In Over Rs 11,300 Crore

The auction, which offered a total of 10 GHz of spectrum across frequencies ranging from 800 MHz to 26 GHz, received total bids worth Rs 11,340 crore

5G auction: India's spectrum auction wrapped up within a few hours on the second day of bidding, with telecommunications companies purchasing over Rs 11,300 crore worth of radio waves. This amount represents just 12 per cent of the Rs 96,238 crore minimum value estimated by the government for the available spectrum.

The auction, which offered a total of 10 GHz of spectrum across frequencies ranging from 800 MHz to 26 GHz, received total bids worth Rs 11,340 crore, according to sources. Approximately 140-150 MHz of spectrum were sold over seven rounds of bidding.

While five rounds of bidding took place on the opening day of June 25, minimal activity on Wednesday led officials to conclude the auction by 11:30 AM.

Held after a nearly two-year gap, the 2024 auction featured spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands. Market analysts had predicted limited bidding activity, with telecom operators focusing on spectrum renewals and selectively enhancing their coverage.

Leading the charge were Reliance Jio, Bharti Airtel, and Vodafone Idea (VIL), all vying for high-speed mobile service radio waves. The exact operator-wise breakdown of bids will be disclosed once an official announcement is made.

According to the Department of Telecom's day-one report, bidding was concentrated in the 900 MHz and 1800 MHz bands, with some bids for 2100 MHz band spectrum in three circles.

The previous auction in 2022 was a blockbuster event spanning seven days, selling over Rs 1.5 lakh crore worth of 5G telecom spectrum. Mukesh Ambani's Jio emerged as the top bidder, acquiring nearly half of the airwaves for Rs 88,078 crore, while Bharti Airtel and Vodafone Idea secured spectrum for Rs 43,084 crore and Rs 18,799 crore, respectively.

Bharti Airtel's spectrum is set to expire in six circles and VIL's in two circles. Low earnest money deposits (EMD) from telcos ahead of the auction indicated a selective interest in the available spectrum.

Analysts expect Bharti Airtel to renew some of its expiring spectrum, particularly 42 MHz in the 1800 MHz and 900 MHz bands across six circles. Jio, which already has substantial spectrum in both 4G and 5G bands, is expected to be selective. Jio is estimated to have spent Rs 1,000 crore on spectrum in the 1800 MHz band in a few circles.

For the 2024 auction, telcos submitted EMDs ranging from Rs 300 crore to Rs 3,000 crore, the lowest since 2014 and an 80 percent drop from the previous auction in 2022. Reliance Jio submitted the highest EMD of Rs 3,000 crore, followed by Bharti Airtel with Rs 1,050 crore and Vodafone Idea with Rs 300 crore.

The Cellular Operators Association of India, which includes members such as Reliance Jio, Bharti Airtel, and Vodafone Idea, stated that the auctions would expedite the rapid rollout of 5G services across the country, enhancing coverage and connectivity.