SPECTRUM AUCTION CONCLUDES WITH GOVT GETTING OVER RS 11,000 CRORE, BHARTI AIRTEL THE HIGHEST BIDDER

New Delhi: The latest round of telecom spectrum auction ended Wednesday — the second day of the bidding — with the government mopping up Rs 11,340 crore.

Bharti Airtel topped the buyers’ list with bids worth Rs 6,856 crore for 97 MHz spectrum, while market leader Reliance Jio bought the 14.4 MHz spectrum at Rs 973 crore. The third private telecom operator Vodafone Idea (Vi) acquired 50 MHz of spectrum at a total commitment of Rs 3,510 crore.

A total of 10,522.35 MHz of spectrum across various bands, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz, worth Rs 96,238.45 crores at reserve price was put up for auction in this round. This included spectrum expiring in 2024 and the unsold spectrum from a previous auction held in 2022.

Union Minister of Communications Jyotiraditya Scindia said the telecom services providers have taken spectrum not only for continuity of service but for expanding their services. He added, though, that the volume is limited because a large part of the spectrum required had already been auctioned last year.

In the last auction held in 2022, a record over Rs 1.5 lakh crore worth of telecom spectrum was sold over seven days of bidding that saw billionaire Mukesh Ambani-led Reliance Jio emerge as the top bidder.

“We will continue the process with the clear objective of ensuring reliability and growth of telecom services in India,” the minister said.

An official release added that the auctions, which started on 25 June, 2024, concluded on 26 June, 2024, after seven rounds.

“As an auction for 5G spectrum was held recently and 5G monetisation is still in progress, no bidding took place in 800 MHz, 2300 MHz, 3300 MHz and 26 GHz bands. A total quantum of 141.4 MHz (26.5%) was sold from the balance 533.6 MHz spectrum. This is despite the fact that a very large amount of spectrum i.e., 51.2 Ghz of spectrum, was sold in August 2022,” it said.

The unsold spectrum will again be put to auction next time.

In a statement, Gopal Vittal, MD and CEO, Bharti Airtel, said, “Airtel continues to judiciously acquire the right amount of spectrum to deliver the best possible experience to our customers. In this auction, we have bolstered our sub‐gigahertz and mid‐band holding which will significantly improve our coverage, especially indoor.”

Akash M. Ambani, Chairman, Reliance Jio Infocomm Limited, said, “…This new spectrum acquisition will continue to enable us to serve aspirations of the new India, in terms of growing traffic demands and superior customer experience, which is no longer limited to only urban markets. We want every Indian to enjoy the transformational benefits of Jio’s next generation of digital solutions.”

Financially struggling Vodafone Idea, which has raised over Rs 20,000 crore this year, renewed its 900 MHz spectrum in UP West and West Bengal circles, while also enhancing its 900 MHz spectrum holding in seven circles, including Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, UP East and Kolkata.

Akshaya Moondra, CEO, Vodafone Idea Limited, said, “VIL has strategically acquired spectrum in the select markets to enhance and strengthen its overall spectrum portfolio…As VIL embarks on its growth journey with the fund-raising plan in place, this spectrum acquisition will further strengthen its competitive position in the market.”

In a statement, the company said this would help it provide a better 4G experience to customers in these large markets, particularly indoors. The company added that it has acquired 1800 MHz spectrum in Madhya Pradesh and 2500 MHz spectrum in Bihar, which will help in increasing the network capacity quickly, and that it “already holds sufficient and competitive 5G spectrum in its 17 priority circles”.

“This spectrum acquisition along with the comprehensive fund raise (equity and debt) will empower the company to work towards executing its well-defined strategy, including expansion of its 4G coverage and launch of 5G services and to participate in the large and significant opportunities offered by the Indian wireless sector,” it added.

(Edited by Zinnia Ray Chaudhuri)

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2024-06-27T09:25:08Z dg43tfdfdgfd