5G Spectrum: DoT receives bids worth ₹11,000 cr on Day 1

The Department of Telecom (DoT) received bids for 5G spectrum worth ₹11,000 crore on the first day of the sale. Five rounds were held, in which bids were primarily placed on five of the eight bands on offer. The spectrums that received bids include 800 megahertz (MHz), 900 MHz, 1,800 MHz, 2,100 MHz, and 2,500 MHz.

The spectrums that are still unsold will go for bidding today.

The second round of the sale of the 5G spectrum by the DoT started on Monday, where top telecom services providers like Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) are vying for the 5G airwaves. The 5G auction is set to boost existing telecom services and maintain the continuity of services.

A total of 10,522.35 MHz or 10.5 GHz of 5G airwaves are being sold this time, valuing ₹96,238.45 crore at reserve prices. The current 5G spectrum sale comes after the first mega 5G spectrum auction of 72 GHz in July 2022.

The spectrums up for bidding are 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz.

For the 5G spectrum auction, earnest money deposit (EMD) of ₹4,350 crore has been deposited by three telecom players, which could mean a total bid amount of ₹52,200 crore based on a maximum limit of 12x the EMD amount.

“The 5G auctions will catalyze the rapid rollout of 5G services across the country, leading to enhanced coverage and vastly improved connectivity. Moreover, the successful deployment of 5G will be a major stride towards achieving digital inclusion,” says Lt Gen Dr S.P. Kochhar, director general, of COAI (Cellular Operators Association of India).

He said by bridging the digital divide, the 5G spectrum auctions will ensure that even the most remote areas of the country gain access to high-speed internet, fostering greater economic opportunities and social advancement. "The auctions also symbolise our commitment to 'Viksit Bharat' and we are confident the outcomes of these auctions will lay a strong foundation for a prosperous and digitally empowered India," says Kochhar.

The auction will be a simultaneous multiple-round ascending (SMRA) e-auction and the spectrum will be assigned for twenty (20) years. The successful bidders will be allowed to make payments in 20 equal annual instalments, duly protecting the NPV at the interest rate of 8.65%. The spectrum acquired through this auction can be surrendered after a minimum period of 10 years. There will be no spectrum usage charges (SUC) for the spectrum acquired in this auction. It is not required by the successful bidder to submit a financial bank guarantee (FBG) and performance bank guarantee (PBG). The reserve price of the expensive 800 MHz and 900 MHz bands remains the same as that of the 2022 auction in all the priority circles.