India to Auction ₹96,318 Crore Telecom Spectrum on Tuesday
The Department of Telecommunications (DoT) is set to auction ₹96,318 crore worth of telecom spectrum on Tuesday. This auction will include all unsold spectrums from the previous sale, featuring bands such as 800, 900, 1800, 2100, 2300, 2500, 3300 MHz, and 26 GHz.
Earlier this year, the Union Cabinet approved the auction of 10,523.15 MHz of spectrum across these bands at a reserve price of ₹96,317.65 crore. Key players like Reliance Jio, Bharti Airtel, and Vodafone Idea have collectively deposited ₹4,350 crore for the bidding process.
This auction is significantly smaller than the last 5G spectrum auction in 2022, which saw a much higher volume of spectrum and financial stakes. The companies’ bidding capability is determined by their earnest money deposit (EMD), allowing them to bid for spectrum up to 12 times the amount of their EMD.
The demand for spectrum is expected to be lower this time, partly due to a cautious approach from market leader Reliance Jio. The quantum of spectrum on offer has reduced significantly since the 2022 auction.
Reliance Jio and Airtel have seen substantial growth in their 5G subscriber bases, reaching around 20-22%. Airtel plans to expand its 5G sites in Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Kerala, and West Bengal to enhance rural coverage. Vodafone Idea has opted not to renew certain spectrum licenses in West Bengal and Uttar Pradesh West, reducing its renewal expenditure significantly.
While the government initially hoped to raise about ₹10,000 crore from this auction, brokerage reports suggest the actual revenue may range between ₹4,000 crore and ₹16,600 crore.
