Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) are set to compete for a share of the 5G spectrum valued at Rs 96,317.65 crore. As per sources from the telecom department cited in an Economic Times report, spectrum auctions are slated for the next auction round, commencing on June 6. Initially scheduled for May 20, the auction date was postponed due to general elections. The telecom department received three auction applications from India’s private telecom operators by the application deadline.
Industry experts and analysts anticipate the forthcoming spectrum sale to be subdued, as India’s leading telecom companies already possess sufficient 5G airwaves for their existing requirements. Additionally, no other company besides the three telecoms is reported to have applied for spectrum this time. In the previous auction conducted in June 2022, an Adani group company emerged as a surprise bidder.
The auction will include airwaves across eight key bands: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.
Industry experts anticipate that Bharti Airtel and Vodafone Idea (Vi) will engage in selective bidding, focusing primarily on renewing their existing licenses in specific circles. Airtel needs to renew spectrum in J&K, Odisha, Bihar, UP (East), West Bengal, and Assam, while Vi requires renewals in West Bengal and UP West circles. Estimates suggest that Airtel and Vi may bid only for renewals valued at around Rs 4,200 crore and Rs 1,950 crore, respectively. In contrast, Reliance Jio is not under pressure to renew any licenses this year.
Key Auction Details:
– Spectrum licenses will be valid for 20 years, with payments spread over 20 annual installments.
– Successful bidders have the option to surrender the spectrum after a minimum of 10 years.
– Financial and performance bank guarantees are not compulsory for participation.
– Auctioned airwaves will be exempt from Spectrum Usage Charges (SUC) following recent telecom reforms.
– Applicant details will be published by the Department of Telecommunications (DoT) by May 10.
Application withdrawal deadline: May 17
Final bidder list expected: May 20
Successful bidders to deposit amount within 10 days of receiving demand notice from DoT
DoT to issue frequency assignment letter within 30 days of receiving payment
