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Spectrum Auction Sees Small Fall in Highest Bids at End of Day 6

Spectrum Auction Sees Small Fall in Highest Bids at End of Day 6

By Indo-Asian News Service | Updated: 11 March 2015 11:35 IST

After 37 rounds of bidding for the telecom spectrum, there was a small drop in the collective value of the highest bids across bands to Rs. 92,200 crores on Tuesday from Rs. 94,000 crores a day earlier as stakeholders switched their preferred frequencies.

"There was activity in two new service areas in 1800MHz band. There is a shift in activity from 2100MHz and 900MHz bands to 1800MHz and 800MHz bands," an official said.

The official further explained that the norms allow a bidding company to forgo its bid for a particular band made earlier to a new band if it is seen that such a switch would prove beneficial, financially and in terms of spectrum management. Hence the small drop.

The official said there was still some spectrum up for grabs and that the bidding will re-commence on Wednesday at 9am.

"The auction of spectrum in 2100MHz, 1800MHz, 900MHz and 800MHz bands re-commenced today (Tuesday) at 9am and six rounds of bidding were completed. Till now, 37 rounds of bidding have taken place," an internal note said.

"At present, over 83 percent spectrum has been provisionally allocated to bidders at a value of approximately Rs. 92,200 croress," the note added.

"Majority of the service areas are going at a premium over the reserve price. With 100 percent activity requirement and activity in new service areas, the competitive bidding is expected to continue."

The government is offering in this e-auction a total of 103.75MHz in the 800MHz band over 85 blocks, 177.8MHz in the 900MHz band over 889 blocks, 99.2MHz in 1800MHz band over 496 blocks and 5MHz in the 2100MHz band over 17 blocks.

Eight companies are in the fray - Vodafone, Bharti Airtel, Idea Cellular, Telewings, Aircel, Tata Teleservices, Reliance Communications and Reliance Jio. The auction is crucial for some of them as their 20-year licence term draws to a close in December.

The commitment for telecom spectrum comes over and above the Rs.200,000 crores that India Inc has already bid under two phases of auctions for award of coal blocks. But the proceeds from the auction of coal blocks will go to the respective state governments over 30 years.

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