2G spectrum bids soar well above base price after 21 rounds
06 Feb 2014
The end of the third day of the for 2G spectrum auction saw 21 rounds of bidding, an official statement said in New Delhi.
"The government received cumulative bids worth around Rs50,000 crore at the end of the third day. Going forward, we expect bidding to move in a very robust way," telecom secretary M F Farooqui said.
Eight mobile phone service providers are participating in the auction for 46 MHz in 900 MHz band and 385 MHz in 1,800 MHz band.
At the end of the third day of bidding, data released by the department of telecom showed that the 1,800 MHz band received bids in all 22 circles and the 900 MHz band received bids in all three circles which are up for auction. The highest demand for 900 MHz was for Delhi circle and in the 1,800 MHz the highest bidding was seen for Assam and West Bengal circles.
The eight mobile phone service providers participating in the auction are Reliance Communications, Reliance Jio, Bharti Airtel, Vodafone, Telewings, Aircel, Tata Teleservices and Idea Cellular.
In the 900 MHz, the Mumbai price shot up 71.7 per cent above the reserve price, Delhi went up by 59.5 per cent and Kolkata by 54.2 per cent. The number of blocks that are on offer in Mumbai is 16, Delhi 16 and Kolkata 14.
Bharti Airtel's 20-year licence is going to expire in Delhi and Kolkata circles and Vodafone India's 20-year licences in Delhi, Mumbai and Kolkata circles are getting over in November this year.
The total spectrum on offer is 46 MHz in 900 MHz band (only Delhi, Mumbai and Kolkata) and 385 MHz in 1,800 MHz band (all 22 circles) simultaneously. The government targets to mop up Rs.40,874.50 crore from spectrum auction in 2013-14.
This auction does not have any last date. It will go on every week from Monday to Saturday from 9 am to 7.30 pm as long as telecom service providers keep bidding.
The service providers will bid using fixed Internet Protocol (IP) as dynamic IP addresses are not allowed.
The objectives of the auctions are to obtain a market-determined price of spectrum in 1,800 MHz and 900 MHz bands through a transparent process; ensure efficient use of spectrum and avoid hoarding; stimulate competition in the sector; promote rollout of the respective services and maximise revenue proceeds from the auctions within the set parameters.
Times Internet Ltd and e-Procurement Technologies Ltd are advising the government on the auction. Administration of the e-auction is the responsibility of e-Procurement Technologies.
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