5G Auction Day 1 Update: Spectrum Bids Exceed Rs 1.45 Lakh Crore, Says Minister

Four rounds of bidding were completed in the 5G spectrum auctions that started on Tuesday, with demand yet to outstrip supply of airwaves.

The bid amount exceeds Rs 1.45 lakh crore on first day of bidding, PTI tweeted quoting Telecom Minister Ashwini Vaishnaw.

Bids have been placed at the reserve price in the 26 GHz, 3,300 MHz and 700 MHz bands, and sporadic demand was seen in 800 MHz and 900 MHz bands in some circles, according to data released by the Department of Telecommunications.

Demand was also seen in the mid-band of 1,800 MHz, 2,100 MHz, and 2,500 MHz bands.

The DoT does not disclose bid details of individual operators until the auction is complete. Actual demand and strategy of individual bidders will decide for how many days the auction continues. The industry expects spectrum to be sold near the reserve prices, and the bidding to last about two days.

Reliance Jio Infocomm Ltd., Bharti Airtel Ltd., Vodafone Idea Ltd. and Adani Data Ltd., a unit of billionaire Gautam Adani-controlled group, are participating in the auctions with 72 GHz of radiowaves worth Rs 4.3 lakh crore on offer.

The price for the spectrum has been lowered across bands with 600/700/800/900MHz frequencies similarly priced. Pricing in the mid bands of 1,800 MHz and 2,100 MHz is also similar.

The government has offered easier payment terms--20 equal instalments instead of 30-50% upfront payment and an attractive interest rate of 7.2% on deferred payments, which is expected to generate demand from telecom operators.

According to Jefferies, Bharti Airtel is expected to focus on the 3,300 MHz and 26 GHz bands, while it expects Reliance Jio to enhance its spectrum in 800 MHz and 1,800 MHz bands. It also expected Reliance Jio to acquire a minimum of 100 MHz in 3,300 GHz, and 800 MHz in 26 GHz bands. And if it wants to roll out standalone-5G, the Mukesh Ambani-controlled company could look at 5 MHz in the 700 MHz band.

The brokerage said Adani could acquire at least 50 MHz in the 3,300 MHz band in metro and A-circles and also acquire 400 MHz in the 26 GHz band to lower its spectrum usage charge. Its earnest money deposit allows it to acquire 50 MHz in the 3,300 MHz band on a pan-India basis.

EMD itself is reflective of the quantity of airwaves a company can bid for in the auction. Companies can bid up to eight times the deposit.

Mukesh Ambani's Reliance Jio has deposited Rs 14,000 crore in earnest money, while its rival the Adani Group made a modest Rs 100-crore deposit recently. Sunil Mittal-led Bharti Airtel had put in Rs 5,500 crore, while for Vodafone Idea the amount stands at Rs 2,200 crore.

EMD of all the four applicants seeking 5G radiowaves adds up to Rs 21,800 crore, higher than Rs 13,475 crore deposited in the 2021 auction when three players were in the race.