Jio, Airtel and Voda Idea lap up 60% of spectrum on sale for Rs77,146 cr on Day 1

The total value of the spectrum for which there are provisional winning bids is estimated at Rs77,146 crore, which has substantially exceeded f pre-bid estimates of Rs45,000 crore.

On offer is spectrum in various band widths o700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz.

The e-auction is based on Simultaneous Multiple Round Ascending Auction (SMRA) methodology. Available spectrum in all bands is simultaneously put to auction in all the Licensed Service Areas (LSAs).

Bidding has taken place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. The participants did not bid in 700 MHz and 2500 MHz bands.  Another one or two rounds are expected tomorrow.

Bidder-wise details of quantity won and amounts payable will be available only after conclusion of the auction.

A total of 2308.80 MHz spectrum is being put to auction, out of which there have been bids for 849.20 MHz so far. Excluding spectrum in 700 MHz and 2500 MHz bands, this is almost 60 per cent of the spectrum put to auction. In the 2016 spectrum auction, where there were seven bidders, the spectrum sold was 41 per cent by quantity and 12 per cent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37 per cent and 19 per cent, respectively, with 3 participants.

Spectrum which will be assigned to the successful bidders is valid for 20 years.

In 700 MHz, 800 MHz, and 900 MHz bands, bidders are required to pay 25 per cent of the final bid amount as upfront payment. In the rest of the bands, bidders are required to make payment of 50 per cent of final bid amount upfront. The balance amount (after upfront payment) will be payable in 16 equated annual instalments after a moratorium of 2 years.

The auction will resume tomorrow morning, and is likely to conclude tomorrow.