Day 9 summary- Total provisional bid amount dips slightly, bids received in all 4 bands

towerToday the auction process completed 6 rounds bringing the total up to 55 rounds. The total bid amount dipped from Rs. 1,02,057 Crore yesterday to Rs. 1,01,432 Crore today. The total quantum of spectrum provisionally allocated increased to 87%. Bidding activity was observed in all 4 bands. By the end of round 55 there was no surplus demand for 2100MHz in any circle. In 1800MHz band there was excess demand in Haryana circle. In 900MHz band there was no surplus demand but demand equalled availability in West Bengal circle which is why there will be a marginal increase in the block price in round 56. In 800MHz band there was surplus demand in Andhra Pradesh, Haryana, North East and Madhya Pradesh circles.

As bidding still continues aggressively in all 4 bands, industry sources have reported that incumbents believe Reliance Jio is purposely bidding aggressively in 900MHz band to drive up the winning bid amount since it knows that the incumbents will go to any length to win back their expiring spectrum to protect their investments in infrastructure and also retain customers in circles where license is expiring. By making the incumbents bid heavily on 900MHz Rjio is reducing the available resources that they possess thus restricting competition in the 2100MHz which it eyes to buy. Airtel may look to acquire 900MHz spectrum in all circles for launching its dual carrier aggregation platinum 3G network.

The auction process will continue tomorrow with round 56. Keep reading TT for the latest updates on the auction process.

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12 Comments on "Day 9 summary- Total provisional bid amount dips slightly, bids received in all 4 bands"

 

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Joy
March 14, 2015 11:28 am 11:28 AM
@Esmail Good Work Dude !! I check your post every day you keep me well informed about the spectrum auction 2015, it’s like daily news from you. Thanks for sharing all this information. Besides I have some things to ask from you. First Question: 2100 MHz should have seen fierce competition as it’s generates more revenue & more room for business for the mobile operators, but till date there is nothing much going in 2100 MHz bidding, Why ? Second question: What RJio (a pure LTE operator) is going to do with 2100 MHz ?? I think RJio should keep… Read more »
Matthew George
March 14, 2015 3:09 pm 3:09 PM
@joy:2100MHz for 3G spectrum auction showed a fierce competition in 2010 because it was operators fear that drove the contest.While the price of 3G maynot worth the price in 2010,fall in stock price at not winning 3G spectrum made fight seem worth it. Operators have based their auction decision on the price they would pay by losing high ARPU customers rather than potential value accretion from owning 3G.Their valuation in 2010 was based upon,the business potential of a circle for a company and the value of losing customers if operator doesnot get 3G licence.This is heightened by scarcity of spectrum… Read more »
Joy
March 14, 2015 6:56 pm 6:56 PM

@Matthew George Thanks !! Very Informative !!

prathap kumar
March 14, 2015 8:56 am 8:56 AM

The total bid amount dipped from Rs. 1,02,057 Crore yesterday to Rs. 1,01,432 Crore today. I think it has some mistake

shashi
March 14, 2015 7:17 am 7:17 AM

@esmail u missed article on Airtel- tata talk in for Icra!!

Esmail
March 14, 2015 11:43 am 11:43 AM

Would have covered it, but both companies Airtel and Tata have officially denied that they are looking forward to any such agreement. Would have been an article based on half cooked facts and speculation.

Anil Kumar
March 14, 2015 9:16 pm 9:16 PM

Lol! When the Jio told you that they are launching service?

Reasons why we expect to see a soft launch by Reliance Jio on 28th December

Will Reliance Jio start its services by end of January ?

Aren’t they are rumors?

hahahaha

Hope you don’t hide this comment.

shashi
March 14, 2015 6:12 pm 6:12 PM

thanks esmail for reply. off topic I saw some peoples from Airtel Opening 4g underline wires in Mumbai . means they coming to launch 4G soon by march 2015 end?

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