India is gearing up for its latest 5G airwaves auction, valued at over ₹96,000 crore, starting Tuesday. Major telecom companies like Reliance Jio, Bharti Airtel, and Vodafone Idea are competing to secure essential frequencies for 5G services.
Previous Auction Success
The last spectrum auction in August 2022 brought in a record ₹1.5 lakh crore. This time, the government is offering 10.5 GHz of 5G airwaves, significantly less than the 72 GHz available in the first 5G auction in July 2022.
Key Players and Bids
- Reliance Jio has deposited ₹3,000 crore, the highest earnest money, allowing them to bid for the most radio waves.
- Bharti Airtel deposited ₹1,050 crore.
- Vodafone Idea deposited ₹300 crore.
Spectrum Bands on Auction
The government is auctioning eight spectrum bands: 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz.
Expected Outcomes
Analysts predict the auction will be quieter than last time. The three telecom companies are expected to collectively spend around ₹12,500 crore, which is about 13% of the total ₹96,320 crore worth of airwaves on sale. This subdued interest is due to:
- Existing 5G airwave holdings by Jio, Airtel, and Vodafone Idea.
- Low 5G adoption rates due to a lack of consumer-centric use cases.
Specific Interests
- Vodafone Idea is likely to focus on the 26 GHz band to reduce its spectrum usage charges.
- Reliance Jio and Bharti Airtel are interested in the 3300 MHz band, crucial for cost-effective 5G services.
Reasons for Lower Interest
The modest earnest money deposits (EMDs) submitted by the telecom companies indicate a muted auction. These deposits range from ₹300 crore to ₹3,000 crore, the lowest since 2014 and 79-86% lower than the 2022 auction.
Historical Data on Spectrum Auctions
- Quantum of Spectrum Sold Over the Years:
- 2010: 465 MHz
- 2012: 127.5 MHz
- 2013: 30 MHz
- 2014: 353.2 MHz
- 2015: 418.25 MHz
- 2016: 964.8 MHz
- 2021: 855.6 MHz
- 2022: 51,236 MHz
- Revenue from Past Auctions:
- 2010: ₹76,789 crore
- 2012: ₹9,407 crore
- 2013: ₹3,639 crore
- 2014: ₹61,162 crore
- 2015: ₹1,09,874 crore
- 2016: ₹65,789 crore
- 2021: ₹77,814 crore
- 2022: ₹1,50,173 crore
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