Home
Telecom
Telecom News
Spectrum Auction May Fetch Over Rs. 1,00,000 Crores

Spectrum Auction May Fetch Over Rs. 1,00,000 Crores

By Press Trust of India | Updated: 23 February 2015 09:32 IST

With telecom operators depositing a huge Rs. 20,435 crore as earnest money for spectrum auction, government is set to garner over Rs. 1 lakh crore from sale of radiowaves, after generating similar amount through sale of coal blocks.

For the entire amount of spectrum put on auction, an earnest money deposit (EMD) of Rs. 12,000 crore could have been enough but telecom operators have deposited Rs. 20,435 crore, which shows that fierce bidding is likely in the auction, official sources told PTI.

"The EMD amount, which is the highest so far, shows that there is high demand of spectrum and we are looking forward to a successful spectrum auction," a Department of Telecom official said.

Based on the reserve price, the government estimated to garner over Rs. 82,000 crore from the sale of radiowaves for providing 2G as well as 3G services.

At the minimum or auction start price for the 2,100MHz band or 3G spectrum, government would garner at least Rs. 17,555 crore. The reserve price for auction of 2G spectrum in 800MHz, 900 Mhz and 1800MHz bands will fetch the government Rs. 64,840 crore.

With the record EMD, the final earnings could be more than Rs. 1 lakh crore, sources said.

Till Saturday, sale of 18 coal blocks to different companies through auction had generated an estimated over Rs. 1 lakh crore for respective states.

The official added that the quantum of spectrum is lower than last time, but the EMD is higher which raises hopes of garnering over Rs. 1 lakh crore from auction scheduled to start from March 4.

Reliance Jio has submitted the highest EMD of about Rs. 4,500 crore, followed by Bharti Airtel Rs. 4,336 crore, Idea Cellular Rs. 4,000 crore, Vodafone Rs. 3,700 crore, Tata Teleservices Rs. 1,500.25 crore, Reliance Communications Rs. 1,175 crore, Uninor Rs. 724.95 crore and Aircel Rs. 500 crore, sources said.

For last auction conducted in February 2014, government received EMD of Rs. 8,759.75 crore from eight companies.

In 2010, nine telecom companies jointly submitted EMD of Rs. 3,515 crore for 3G auctions and 11 companies Rs. 2,291.25 crore for broadband wireless access spectrum that can be used for 4G services.

In November 2012 auction, government received EMD of Rs. 3,382.5 crore from eight companies for spectrum auction. For CDMA auction conducted in 2013, the lone bidder Sistema Shyam gave EMD of Rs. 613.75 crore.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.