Radiowaves attract Rs 11,340 crore bids after six rounds in mega spectrum auction
10th Telecom Spectrum Auction: The country's 10th spectrum auction for mobile radiowaves concluded on Wednesday with bids totaling Rs 11,340 crore after six rounds of bidding. Initiated by the Department of Telecommunications (DoT), the auction aimed to strengthen the country's telecom infrastructure. It included bands crucial for 5G services, offering a total of 10,522.35 MHz across bands ranging from 800 MHz to 26 GHz.
10th Telecom Spectrum Auction: A mega auction for mobile radiowaves ended on Wednesday with bids of Rs 11,340 crore, after six rounds of bidding in a process initiated by the Department of Telecommunications (DoT) the previous day to bolster the country's telecom infrastructure. The country's 10th spectrum auction - since the sale of radiowaves began through an online bidding process in 2010 - was in line with the government's commitment to facilitating affordable, state-of-art high quality telecom services to the citizens. The 2024 telecom spectrum auction, poised to reshape the country's telecom landscape, included bands essential for 5G services, with a total of 10,522.35 MHz across bands ranging from 800 MHz to 26 GHz going under the hammer. The auction involved eight spectrum bands: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz.
The last spectrum auction in India was held in August 2022, wherein radiowaves for 5G services were included in a first.
Here's everything you need to know about the country's 10th spectrum auction:
Telecom Spectrum Auction News: Final breakup of bids
While Bharti Airtel spent around Rs 7,858 crore in the country's 10th auction of radiowaves, Vodafone Idea Vodafone Idea expended Rs 2,509 crore and Reliance Jio Infocomm Rs 973 crore, according to provisional figures.
Telecom Spectrum Auction: Take a look at reserve prices and other essential details of 8 bands
The 800 MHz and 1800 MHz bands were valued at Rs 43,093.7 crore at their reserve prices, amounting to 44.8 per cent of the total spectrum offered.
Telecom Spectrum Auction: How long will spectrum be allocated for?
The spectrum sold in the 2024 auction will be allocated to successful bidders for 20 years.
Winners will be permitted to make payments in 20 equal annual instalments, duly protecting the net present value (NPV) at the interest rate of 8.65 per cent.
Telecom Spectrum Auction: How soon can winners sell spectrum?
The telecom spectrum acquired through the 2024 auction can be surrendered after a minimum of 10 years.
Telecom Spectrum Auction News: List of participants
Three telecom operators participated in the auction in the form of bidders:
1) Bharti Airtel
2) Vodafone Idea
3) Reliance Jio Infocomm
Telecom Spectrum Auction News: Which method followed?
A Simultaneous Multiple Round Ascending (SMRA) e-auction process was followed for auctioning radiowaves under the country's 10th telecom spectrum auction.
What is an SMR auction?
It is a type of auction that involves multiple rounds of bidding taking place simultaneously for different lots/bands. Participants are able to bid on a set number of items individually within each given round.
Telecom Spectrum Auction News: Is there any spectrum usage charge (SUC) applicable?
There is no Spectrum Usage Charge (SUC) applicable to the spectrum acquired in the 2024 auction.
What is SUC?
The spectrum usage charge refers to the fee that telecom operators pay to the government for using the spectrum allocated to them, typically calculated as a percentage of the telecom operator's total Adjusted Gross Revenue (AGR) derived from telecom services.
Telecom Spectrum Auction News: Bidders required to submit bank guarantees?
Successful bidders were not required to furnish a Financial Bank Guarantee (FBG) and a Performance Bank Guarantee (PBG).
Telecom Spectrum Auction News: Which bands are suitable for 5G services?
The 3300 Mhz and 26 Mhz bands are suitable for 5G services.
Mock auctions
In the run-up to June 25, mock auctions were carried out on June 3, June 13 and June 14 to familiarise the participants with the e-auction platform.
Telecom Spectrum Auction News: 10,522.35 MHz radiowaves on the block
The 2024 telecom spectrum auction involved 10,522.35 MHz of radiowaves - in eight bands ranging from 800 MHz to 26 GHz up - in a move that aims to enhance telecom services while promoting affordability and high-quality connectivity for telecom subscribers across the country.
Telecom Spectrum Auction News: When did the last spectrum auction take place?
The last auction of telecom spectrum was held in the country in August 2022, wherein radio waves for 5G services were included for the first time.