Spectrum Auction Bids Reach Rs 107K Crore on Day 12

The spectrum auction bid increased by Rs 3,954 crore to close at Rs 107,000 crore on day 12.

Brisk bidding was seen on 12th day of bidding with activity requirement set at 100 percent. There was aggressive bidding in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands. At present, over 88 percent of the spectrum has been provisionally allocated to bidders at a value of approximately Rs 107,000 crore. Majority of service areas are going at a premium over reserve price.

The competitive bidding is expected to continue as there is still spectrum, which is yet to be sold.

On day 12 there was an increase of Rs 3,954 crore. On day 11 there was an increase of Rs 1,046 crore. On day 10 there was an increase of Rs 2,215 crore. On day 9 there was a loss of Rs 2,000 crore. On day 8 there was a gain of Rs 6,000 crore. On day 7 there was a gain of Rs 3,800 crore. On day 6 there was a loss of Rs 1,800 crore. On day 5 the maximum gain was Rs 8,000 crore. On day 4 the maximum gain was Rs 9,000 crore. Day 3 saw maximum gain of Rs 12,000 crore whereas on day 2 the gain was only Rs 5,000 crore.

At the end of the first day, the estimated bids stood at Rs 60,000 crore, second day it stood at Rs 65,000 crore, third day it stood at Rs 77,000 crore, fourth day it stood at Rs 86,000 crore, fifth day it stood at Rs 94,000 crore, sixth day it stood at Rs 92,200 crore, seventh day it stood at Rs 96,000 crore, eighth day it stood at Rs 102,000 crore, ninth day it stood at Rs 100,000 crore, tenth day it stood at Rs 102,000 crore and eleventh day it stood at Rs 103,046 crore.

The 12th day of the spectrum auction saw 7 rounds of bidding with bids in all four bands. Till date around 74 rounds of bidding has taken place in the recent auction.

The auction for airwaves in four bands – 900 MHz, 1800 MHz, 2100 MHz and 800 MHz started on Wednesday, 4th of March, with all the big players like Airtel, Vodafone, Idea and Reliance Jio in the fray.

Top 5 Bids* (in Rs Cr)
1. Tamil Nadu (2100 MHz) – 1,720
2. Karnataka (2100 MHz) – 1,642.36
3. Maharashtra (2100 MHz) – 1,505
4. Gujarat (2100 MHz) – 1,290
5. Delhi (800 MHz) – 988.35
* Provisional Winning Price per Block

Besides 900 MHz band, the maximum traction was witnessed in the 800 MHz spectrum band. This is little surprising as there was no takers except Sistema Shyam for the same band in the last auction that happened in March 2013, despite the reserve price set at half the current base price.

The spectrum auction is set for aggressive bidding this time as licenses of all top telecom operators are going to expire this year. Bharti Airtel’s licenses in six circles, Vodafone India in seven circles, Idea Cellular in nine and Reliance Communications in seven circles are coming for renewal in 2015-16.

If all operators were to renew their existing spectrum, the cash outflow will be 75 percent above the reserve prices. To participate in the spectrum auction, the operators have deposited an earnest money of Rs 20,435 crore.

The other operators who are participating in the auction are Aircel, Tata Teleservices and Uninor. A total of 380.75 MHz of spectrum is on offer in 900 MHz band, 1,800 MHz and 800 MHz while 5 MHz is up for bidding in the 2,100 MHz band across 17 out of 22 telecom areas or circles in the country.

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