After seven rounds of bidding, just over a quarter or 141 Mhz spectrum of the 533 Mhz that was on offer could be sold with Bharti acquiring 97 Mhz across three bands, followed by Vodafone (30 Mhz) and Reliance Jio (14.4 Mhz)
The auction revenue will be lower than govt’s estimated flow, although an over Rs 2 lakh crore dividend bonanza from RBI will more than make up for the shortfall.Govt had offered a total of 10 GHz of spectrum, ranging between 800 MHz to 26 GHz, which was worth Rs 96,238 crore at the base or auction start price. There were no takers for at least three of the frequencies on offer, generating 12% of the base price.
Bharti Airtel and Vodafone Idea have successfully renewed their expired spectrum in 900 MHz and 1,800 MHz bands, and further an additional quantum of 87.2 MHz worth Rs 6,165 crore has been acquired by telcos to augment their services, DoT said in a statement.
“Spectrum auction 2024 was part of a continuous allocation process that is transparent, robust and progressive. Telecom service providers (TSPs) have taken spectrum not only for continuity of service but for expanding their services but the volume is limited because already a large part of the spectrum required was auctioned only last year,” communications minister Jyotiraditya Scindia told reporters.
In West Bengal and Bihar, bids went above the reserve price in the 1,800 MHz band. DoT statement suggested that the response was muted as most of the 5G spectrum required was auctioned in August 2022 and their monetisation is still in progress.
Companies said they went about buying spectrum in a planned manner. “In this auction, we have bolstered our sub-giga hertz and mid-band holding, which will significantly improve our coverage especially indoor,” said Bharti Airtel MD & CEO Gopal Vittal, adding that the company is seeking to judiciously acquire the right amount of spectrum.
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Telecom companies strategically bid in the recent spectrum auction to enhance 5G services rollout nationwide. The auction saw lower earnest money deposits, signaling a focused approach towards acquiring spectrum for improved connectivity and coverage. Reliance Jio, Bharti Airtel, and Vodafone Idea actively participated in securing radio waves for high-speed mobile services.
Participated in a recent two-day auction for radiowaves, falling short of the government’s minimum value estimate. The event garnered bids totaling only Rs 11,340 crore for 10 GHz of spectrum. Previously, in a seven-day 2022 auction, over Rs 1.5 lakh crore worth of 5G spectrum was sold, with Jio emerging as the top bidder.