The bidding for the government spectrum sent its value over Rs 32,000 crores from its initial estimates on Monday (March 1) said the Ministry of Communication.
The auction for 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands commenced at 10 AM today and three bidders namely Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm were the participants.
The value of the spectrum for which there are provisional winning bids is Rs. 77,146 crores at the end of Day one. Biddings for the spectrum took place in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands while no participants bid for the 700 MHz and 2500 MHz bands.
A press release from the government said “A total of 2308.80 MHz spectrum is being put to auction, out of which there have been bids for 849.20 MHz so far. Excluding spectrum in 700 MHz and 2500 MHz bands, this is almost 60% of the spectrum put to auction. In the 2016 spectrum auction, where there were 7 bidders, the spectrum sold was 41% by quantity and 12% by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37% and 19% respectively, with 3 participants..
Successful bidders can use the spectrum for a period of 20 years.
In 700 MHz, 800 MHz, and 900 MHz bands, bidders are required to pay 25% of the final bid amount as upfront payment. In the rest of the bands, bidders are required to make payment of 50% of final bid amount upfront. The balance amount (after upfront payment) will be payable in 16 equated annual instalments after a moratorium of 2 years.