“Government Sets ₹96,317 Crore Base Price for Jio, Airtel, VI Spectrum Auction on May 20”
The Centre has declared its intention to conduct a mobile internet spectrum auction on May 20, with major players like VI, Airtel, and Reliance Jio expected to engage in fierce competition. The Department of Telecommunications (DoT) recently announced the date for the auction of eight spectrum bands dedicated to mobile internet services, setting a base price of ₹96,317.65 crore.
The Centre has declared its intention to conduct a mobile internet spectrum auction on May 20, with major players like VI, Airtel, and Reliance Jio expected to engage in fierce competition. The Department of Telecommunications (DoT) recently announced the date for the auction of eight spectrum bands dedicated to mobile internet services, setting a base price of ₹96,317.65 crore.
Scheduled for May 20, the upcoming auction will encompass the sale of eight spectrum bands, including those currently held by companies undergoing insolvency proceedings and frequencies set to expire this year. The DoT has outlined its plan to auction off all available spectrum in bands ranging from 800 MHz to 26 GHz, as announced by the Union Cabinet in February.
Ahead of the auction, a mock bidding exercise is scheduled for May 13 and 14, with the actual auction commencing on May 20. Interested companies are required to submit their applications by April 22 to participate in the bidding process. Union Minister Anurag Thakur emphasized that a total of 10,523.8 MHz spectrum would be up for auction, with reserve prices determined using suitable indexation methods.
Moreover, existing telecom service providers have been granted the option to continue utilizing spectrum by paying auction-determined prices during the interim period to ensure uninterrupted telecom services.
Bharti Airtel and Vodafone Idea are anticipated to participate in the auction to renew their licenses, which are set to expire in the 4G band, specifically in the 1800 MHz and 900 MHz frequencies. In addition to these incumbents, it is expected that Reliance Jio and the Adani Group will also join the bidding fray.
However, industry experts and analysts foresee subdued participation and bids in the upcoming auction, attributing it to the anticipation surrounding the imminent 5G spectrum auction. The top Indian telecom companies are purportedly inclined to conserve their airwaves for the forthcoming 5G spectrum, consequently dampening their enthusiasm for acquiring additional spectrums in this auction.
Reliance Jio, in particular, is perceived to be prioritizing preparations for the 5G spectrum, potentially leading the company to adopt a more conservative stance in the forthcoming auction. Conversely, Bharti Airtel and Vodafone Idea are expected to emerge as the primary bidders, driven by the necessity to renew their existing airwaves valued at approximately ₹4200 crore and ₹1950 crore, respectively.
In light of these dynamics, the upcoming spectrum auction is poised to be a critical juncture in shaping the future landscape of India’s telecommunications sector, with companies strategically positioning themselves amidst the transition to 5G technology.
Sources By Agencies
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