 "telecom spectrum")
Because of operators, there was little bidding in the most recent 5G spectrum auction. In contrast, there was fierce competition during the most recent auction in 2022 as carriers sprinted to secure the first 5G airwaves. Exemplary Image
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The government received a meagre Rs 11,300 crore in bids over the course of seven rounds in the 5G spectrum auction, which concluded on Wednesday afternoon, one day after it began. This time, airwaves valued at Rs 96,317 crore were up for grabs.
The winning offer amount matched analyst projections.
The government collected an astounding Rs 1.5 trillion from spectrum auctions in 2022. The fact that the telecom companies were racing to get into the recently available 5G spectrum was one of the causes.
Due to the need for spectrum renewal in the 900 megahertz (MHz) band across numerous telecom circles, Bharti Airtel has emerged as the highest overall bidder this time, as suggested by Department of Telecommunications (DoT) authorities.
At a reserve price of Rs 96,317.65 crore, the government was auctioning off 10,523.15 MHz of spectrum, which includes a sizable portion of voice and data spectrum.
Demand for the 1800 MHz band was strong. It was one of the few bands in which Jio actively sought for spectrum acquisition.
In a Morgan Stanley analysis published on Wednesday, it was said that Vi and Airtel hold 31% and 29% of the market share for 1800 MHz spectrum, respectively.
According to the pre-qualified bidder details made public by the DoT, the three private sector telecom operators, Reliance Jio, Bharti Airtel, and Vodafone Idea, have contributed a total of Rs 4,350 crore as earnest money deposits (EMD) for the bidding. According to research, this is five times smaller than the previous 5G spectrum auctions in 2022.
Businesses are allowed to bid on the number of circles and amount of spectrum they desire by using points that are awarded depending on the EMD amount they have paid. Higher scores indicate a greater ability to submit bids. Telecom companies have the ability to bid up to 12 times their EMD for spectrum.