Reliance Jio, Vodafone Idea (Vi), and Bharti Airtel have submitted applications for the upcoming spectrum auctions. The spectrum auction will start from March 1, 2021, but will only be for airwaves primarily used for providing 4G services. Telcos will get to purchase from a total of 2,251.25 MHz of spectrum in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands. The base price of all the spectrum put in the auction is Rs 3.92 lakh crore. According to a PTI report, the country’s top three telcos have submitted applications for participating in the auctions.
Spectrum in Multiple Frequency Bands Available at a Lower Cost
At the upcoming auctions, telcos can get airwaves in the 900 MHz band at less than half the price in several circles than the amount they paid in the previous auction.
Airwaves in the 800 MHz band have also been made available at a lower base price because it went unsold in 15 out of the 19 circles in the last round of auctions in 2016.
ICICI Securities have also pointed out that the final reserve price of the airwaves in the 800 MHz band has been reduced by 18.5% compared to the previous auction.
On the other hand, the 1800 MHz and 2300 MHz bands’ base price has been fixed at a 14.5% and 17.5% higher-rate than their cost in the October 2016 auction. The government has decided to avail all the airwaves in the 700 MHz band, but its base price has been increased due to which analysts believe that telcos won’t bid for it too much or at all.
Reliance Jio will see 44 MHz of airwaves in the 800 MHz band up for renewal; Airtel will see 12.4 MHz of spectrum in the 900 MHz band along with 47 MHz of spectrum in the 1800 MHz band up for renewal.
Vi will have to renew 6.2 MHz of spectrum in the 900 MHz band and 38.2 MHz in the 1800 MHz band.
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