Spectrum Auction Day 2

Reliance Jio biggest buyer, placing orders for Rs 57,122.65 cr of spectrum: Telecom Secretary on day two.

Spectrum Auction: 2021- Bid amount exceeds Rs 77,000 crore on Day 1

Expectations exceeded, Substantial Industry interest in 800 MHz, 900 MHz, and 2300 MHz bands.No bids for spectrum in 700 MHz and 2500 MHz bands. Pursuant to the Notice Inviting Applications (NIA), auction of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands commenced at 10 AM today. Four rounds of bidding took place till 6 PM. Another one or two rounds are expected tomorrow.

Three bidders Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm are participating in the auction.

The value of the spectrum for which there are provisional winning bids is Rs. 77,146 crore. This has already substantially exceeded pre-bid estimates of Rs. 45,000 crore.

Bidder-wise details of quantity won and amounts payable will be available only after conclusion of the auction.

The e-auction is based on Simultaneous Multiple Round Ascending Auction (SMRA) methodology. Available spectrum in all bands is simultaneously put to auction in all the Licensed Service Areas (LSAs).

Bidding has taken place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. The participants did not bid in 700 MHz and 2500 MHz bands.

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.

Spectrum which will be assigned to the successful bidders is valid for 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.

Communications Minister Ravi Shankar Prasad has said that on the first day of Telecom spectrum auction yesterday, winning bids received till 6 PM were worth 77 thousand 146 crore rupees. This has already substantially exceeded pre-bid estimates of 45 thousand crore rupees. He said, bidding took place for spectrum in 800, 900, 1,800, 2,100 and 2,300 Megahertz. Mr Prasad said, participants did not bid for 700 and 2,500 Megahertz.
 
The auction of spectrum commenced at 10 AM yesterday and four rounds of bidding took place till 6 PM. Another one or two rounds are expected today. Three bidders, Bharti Airtel Limited, Vodafone Idea Limited and Reliance Jio Infocomm are participating in the auction. Bidder-wise details of quantity won and amounts payable will be available only after conclusion of the auction. The e-auction is based on Simultaneous Multiple Round Ascending Auction methodology. Available spectrum in all bands is simultaneously put to auction in all the Licensed Service Areas.
 
A total of 2,308.80 Megahertz spectrum is being put to auction, out of which there have been bids for 849.20 Megahertz so far. Excluding spectrum in 700 Megahertz and 2500 Megahertz bands, this is almost 60 per cent of the spectrum put to auction. In the 2016 spectrum auction, where there were seven bidders, the spectrum sold was 41 per cent by quantity and 12 per cent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37 per cent and 19 per cent with three participants.
 
Spectrum which will be assigned to the successful bidders is valid for 20 years.
 
In 700 Megahertz, 800 Megahertz and 900 Megahertz bands, bidders are required to pay 25 per cent of the final bid amount as upfront payment. In the rest of the bands, bidders are required to make payment of 50 per cent of final bid amount upfront. The balance amount after upfront payment will be payable in 16 equated annual instalments after a moratorium of two years.
 
The auction will resume this morning and is expected to conclude later in the day.

The auction will resume Tuesday morning, and is expected to conclude Tuesday.

Published by Naresh Sagar

Mentor MSME, Motivator, Media Event Org, Management fiscal & Water management.Social Media branding,Internet broadcasters,Propunder of Indian Philosophy

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