Four rounds of bidding took place till 6 pm
Three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm – are participating in the auction
New Delhi: Spectrum auction for 4G in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands commenced at 10 am on Monday and the government received bids worth over Rs 77,000 crore. Four rounds of bidding took place till 6 pm. Three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm – are participating in the auction. Another one or two rounds are expected to take place on March 2, said the Ministry of Communications in an official statement.
“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,” said the ministry. Bidder-wise details of quantity won and amounts payable will be available only after conclusion of the auction.
4G Spectrum auction based on SMRA methodology
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 percent of the spectrum put to auction. In the 2016 spectrum auction, where there were seven bidders, the spectrum sold was 41 percent by quantity and 12 percent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37 percent and 19 percent respectively, with three participants.
4G Spectrum validity will be for 20 years
The 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 percent of the final bid amount as upfront payment. In the rest of the bands, bidders are required to make payment of 50 percent of the 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 on March 2 morning, and is expected to conclude by the end of the day.
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