The 5G spectrum auction for mobile radio wave services concluded with a lukewarm response as total bids worth ₹11,300 crore were reportedly placed by the three key telecom players. The auction, which lasted just over a day, ended after seven rounds, five of which were conducted on Tuesday.
The overall 5G spectrum auction figures are far less than the estimated figures. For the 5G spectrum auction, an earnest money deposit (EMD) of ₹4,350 crore was made by the three telcos, so it was assumed that bid amount could go up to ₹52,200 crore, based on a maximum limit of 12x the EMD amount.
Among the three players, Airtel acquired 97 MHz 5G spectrum in 900 MHz, 1800 MHz and 2100MHz frequency bands through the auction for ₹6,857 crore.
Airtel, in a statement to the exchanges, said it has acquired 97 MHz spectrum by winning back spectrum that was expiring in the current year and additionally purchased spectrum to enhance its mid‐band spectrum holding across the select circles. "With this purchase, Bharti Airtel will continue to enjoy the largest mid‐band spectrum pool in the country."
Out of the above, Bharti Hexacom Ltd. has acquired 15 MHz, with an outlay of ₹1,001 crore. "The spectrum purchase is in line with the company’s stated strategy to build a large pool of mid‐band holding to deliver seamless 4G and 5G services across the country."
With the mid-band spectrum, says Airtel, customers can enjoy enhanced browsing speeds and improved indoor coverage. “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‐giga hertz and mid‐band holding, which will significantly improve our coverage especially indoor,” says Airtel CEO Gopal Vital.
In contrast, Bharti Airtel's main rival Reliance Jio Infocomm reportedly spent around ₹1,900 crore on 26.6 MHz of 1800 MHz band across six circles. However, the company has not officially clarified this. Vodafone Idea's total spending are estimated at ₹2,300 crore.
On the first day of the bidding, the DoT received bids for 5G spectrum worth ₹11,000 crore. The spectrums that received bids included 800 megahertz (MHz), 900 MHz, 1,800 MHz, 2,100 MHz, and 2,500 MHz.
More official details on the 5G spectrum auction are yet to come.
For the 5G spectrum auction, earnest money deposit (EMD) of ₹4,350 crore was deposited by all the three telecom players. “The 5G auctions will catalyze the rapid rollout of 5G services across the country, leading to enhanced coverage and vastly improved connectivity,” Lt Gen Dr S.P. Kochhar, director general, of COAI (Cellular Operators Association of India) had said earlier.
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.
