InvestorQ : What was the outcome of the telecom auctions on 02 March bidding?
Rashi Mehra made post

What was the outcome of the telecom auctions on 02 March bidding?

Archita Jajjoo answered.
2 years ago

Telecom spectrum auctions concluded on 02-Mar with telecom companies lapping up airwaves worth Rs.77,815 crore. The government confirmed that bids were received for 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. As in the 2016 auctions, there were no takers for airwaves in the premium 700 and 2500 MHz bands. Spectrum usage charge for the spectrum will be payable at 3% of adjusted gross revenue or AGR.

The government would be a tad disappointed as nearly one-third of the auctioned spectrum belongs to the premium 700 MHz band. The bigger spectrum buyer in this round was Reliance Jio which placed bids for 488.35 MHz of spectrum worth Rs.57,123 crore across 22 circles. Mukesh Ambani has said that with the increased spectrum now at 1717 MHz, Jio will further expand its digital footprint in India and also prepare for the 5G rollout.

Vodafone Idea Ltd bought spectrum worth Rs.1,993 crore and had placed bids for 0.8 MHz spectrum across 5 circles. The conservatism is understandable considering the financial crunch that Vodafone is in. Bharti Airtel confirmed that it had picked up airwaves to the tune of Rs.18,699 crore in the auction and plans to leverage the spectrum to offer better reach and access to another 9 crore customers across the breadth of India.

The actual response was less than 20% as over 2,250 MHz of spectrum was on offer at a reserve price of Rs.392,000 crore.