5G spectrum auction: Bid amount exceeds Rs 1.45 lakh cr on Day 1
Addressing a press briefing, Telecom Minister Ashwini Vaishnaw added that four rounds of bids took place on Day 1. Bids were also received for 700 MHz band frequencies.
- Jul 26, 2022,
- Updated Jul 26, 2022 9:01 PM IST
Telecom Minister Ashwini Vaishnaw on Tuesday stated that the bid amount for India's first auction of 5G spectrum exceeded Rs 1.45 lakh crore on first day of bidding. Earlier bid amount for spectrum auctions was Rs 1.09 lakh crore. The bidding, which started at 1000 hrs today, will carry over into the next day if there exists a demand for spectrum and bidders are putting in bids.
Addressing a press briefing, Vaishnaw added that four rounds of bids took place on Day 1. Bids were also received for 700 MHz band frequencies. It seems that the telecom industry is moving towards new territory as new tech and new investment is expected, the minister added.
He also added that government is expecting to complete spectrum allocation by August 15 and commence 5G services in India by September or October this year. "Our team is working overtime to meet spectrum allocation post auction," Vaishnaw added.
India's 5G spectrum auction, which powers ultra-high data speeds, is currently underway with a total of 72 GHz (gigahertz) of radiowaves worth at least Rs 4.3 lakh crore up for bidding.
Billionaire Mukesh Ambani's Reliance Jio, Sunil Mittal-led Bharti Airtel, Vodafone Idea, and a unit of billionaire Gautam Adani's flagship Adani Enterprises are in the race to bid for 5G spectrum, that offers speeds of about 10 times faster than 4G, lag-free connectivity and can enable billions of connected devices to share data in real-time.
In addition to powering ultra-low latency connections, which allow downloading full-length high-quality video or movie to a mobile device in a matter of seconds (even in crowded areas), Fifth Generation or 5G would enable solutions such as e-health, connected vehicles, more-immersive augmented reality and metaverse experiences, life-saving use cases, and advanced mobile cloud gaming among others.
The auction is being held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz), and high (26 GHz) frequency bands.
Department of Telecom's own internal estimates put the 5G auction mop up at Rs 70,000 crore to Rs 1,00,000 crore.
Jio, it is expected, will lead the spending, followed by Bharti Airtel, while analysts see limited participation from Vodafone Idea and Adani Group.
Recently, Jio submitted an earnest money deposit (EMD) of Rs 14,000 crore, the highest amongst the four players in the fray for spectrum bidding. The EMD amount of Adani Data Networks stood at Rs 100 crore, indicating a muted and limited spectrum demand from its side. Bharti Airtel has put in Rs 5,500 crore as EMD, while for Vodafone Idea the amount stands at Rs 2,200 crore.
While the earnest money deposit suggests that Jio could be the most aggressive bidder in the pack, Adani Group may be looking to buy the bare minimum spectrum needed to set up a private network.
Typically, earnest deposits indicate players' appetite, strategy, and plan for picking up the spectrum in an auction. It also determines the eligibility points, through which telcos target specific amounts of spectrum in various circles.
In the auction conducted last year - that had lasted two days - Reliance Jio picked up spectrum worth Rs 57,122.65 crore, Bharti Airtel bid about Rs 18,699 crore, and Vodafone Idea bought spectrum worth Rs 1,993.40 crore.
(With agency inputs)
Telecom Minister Ashwini Vaishnaw on Tuesday stated that the bid amount for India's first auction of 5G spectrum exceeded Rs 1.45 lakh crore on first day of bidding. Earlier bid amount for spectrum auctions was Rs 1.09 lakh crore. The bidding, which started at 1000 hrs today, will carry over into the next day if there exists a demand for spectrum and bidders are putting in bids.
Addressing a press briefing, Vaishnaw added that four rounds of bids took place on Day 1. Bids were also received for 700 MHz band frequencies. It seems that the telecom industry is moving towards new territory as new tech and new investment is expected, the minister added.
He also added that government is expecting to complete spectrum allocation by August 15 and commence 5G services in India by September or October this year. "Our team is working overtime to meet spectrum allocation post auction," Vaishnaw added.
India's 5G spectrum auction, which powers ultra-high data speeds, is currently underway with a total of 72 GHz (gigahertz) of radiowaves worth at least Rs 4.3 lakh crore up for bidding.
Billionaire Mukesh Ambani's Reliance Jio, Sunil Mittal-led Bharti Airtel, Vodafone Idea, and a unit of billionaire Gautam Adani's flagship Adani Enterprises are in the race to bid for 5G spectrum, that offers speeds of about 10 times faster than 4G, lag-free connectivity and can enable billions of connected devices to share data in real-time.
In addition to powering ultra-low latency connections, which allow downloading full-length high-quality video or movie to a mobile device in a matter of seconds (even in crowded areas), Fifth Generation or 5G would enable solutions such as e-health, connected vehicles, more-immersive augmented reality and metaverse experiences, life-saving use cases, and advanced mobile cloud gaming among others.
The auction is being held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz), and high (26 GHz) frequency bands.
Department of Telecom's own internal estimates put the 5G auction mop up at Rs 70,000 crore to Rs 1,00,000 crore.
Jio, it is expected, will lead the spending, followed by Bharti Airtel, while analysts see limited participation from Vodafone Idea and Adani Group.
Recently, Jio submitted an earnest money deposit (EMD) of Rs 14,000 crore, the highest amongst the four players in the fray for spectrum bidding. The EMD amount of Adani Data Networks stood at Rs 100 crore, indicating a muted and limited spectrum demand from its side. Bharti Airtel has put in Rs 5,500 crore as EMD, while for Vodafone Idea the amount stands at Rs 2,200 crore.
While the earnest money deposit suggests that Jio could be the most aggressive bidder in the pack, Adani Group may be looking to buy the bare minimum spectrum needed to set up a private network.
Typically, earnest deposits indicate players' appetite, strategy, and plan for picking up the spectrum in an auction. It also determines the eligibility points, through which telcos target specific amounts of spectrum in various circles.
In the auction conducted last year - that had lasted two days - Reliance Jio picked up spectrum worth Rs 57,122.65 crore, Bharti Airtel bid about Rs 18,699 crore, and Vodafone Idea bought spectrum worth Rs 1,993.40 crore.
(With agency inputs)