Spectrum sale: Higher than DoT estimate, however 20% of base worth

The authorities mopped up a further Rs 668 crore on day two of the spectrum public sale for 4G, bringing the full to Rs 77,814 crore, Telecom Secretary Anshu Prakash stated on Tuesday.
Though the full quantity — at greater than Rs 77,800 — is way increased than the federal government expectations of Rs 45,000-Rs 50,000 crore, it is just about 20 per cent of the bottom worth of Rs 3.97 lakh crore that was set by the Department of Telecommunications (DoT) for the spectrum public sale. Of the full 2,308 megahertz (MHz) spectrum that was up for grabs, the DoT managed to promote 855.60 MHz spectrum during the last two days.
Mukesh Ambani-owned Reliance Jio Infocomm emerged as the very best bidder within the 4G auctions concluded on Tuesday, having bid for 488.35 MHz of the full 855.60 MHz spectrum that was offered over the 2 days.
Its rival Bharti Airtel was not far behind and acquired a complete of 335.45 MHz of the full accessible spectrum offered over the 2 days.
On the opposite hand, Vodafone Idea — which had a gross debt of roughly Rs 1.18 lakh crore as of June 2020 — purchased solely 11.8 MHz spectrum, Prakash stated.
As anticipated, there have been two extra rounds of bidding on Tuesday, along with the 4 that had been carried out on Monday. There had been no bids for the 700 MHz and the two,500 MHz bands even on day two, he added.
Among the telcos, Reliance Jio spent Rs 57,122.65 crore and Bharti Airtel purchased Rs 18,698.75 crore, whereas Vi spent Rs 1,993.40 crore to purchase spectrum.
All the spectrum auctioned off over the 2 days was offered on base worth, with the utmost bidding seen within the 800 MHz frequency band. Of the full 230 MHz spectrum accessible within the 800 MHz band, about 150 MHz or 65 per cent was offered.
On Tuesday, the DoT additionally revised its estimates of upfront cost receipts for this monetary yr. The Department now expects cost of as much as Rs 20,000 crore from the three telecom operators by March 31.
Prakash stated an interministerial committee of the telecom ministry and the Finance Ministry will meet over the subsequent 10 days and provides its remaining approval for the auctions carried out during the last two days.
“Most of the operators have consolidated their positions in the existing spectrum bands in which they were operating and taken spectrum in the bands,” he added.

For the auctions this time, the federal government has placed on provide frequencies within the 700, 800, 900, 1,800, 2,100, 2,300, and a pair of,500 MHz bands. A complete 2,251 MHz of spectrum for a reserve worth of Rs 3.92 lakh crore are up for bids.
On Monday, the Centre had obtained bids within the 800,900, 1,800, 2,100 and a pair of,300 MHz bands, whereas no bids had been obtained within the 700 MHz and a pair of,500 MHz bands. Government officers, nevertheless, stated that the worth of excessive base worth 700 MHz band and the truth that it may also be utilized in 5G companies could possibly be one of many causes the spectrum in that band remained unsold.