Spectrum bidding slows, reaches Rs92,000 cr on sixth day
11 Mar 2015
The telecom spectrum auction kitty surprisingly slowed to Rs92,200 crore at the end of sixth day of bidding on Tuesday, as bids moderated after surging for five straight days in the biggest-ever sale of 2G and 3G airwaves in India.
The total commitments in terms of provisional allocation of spectrum had risen to Rs94,000 crore till Monday.
"At present, over 83 per cent of the spectrum has been provisionally allocated to bidders at a value of approximately Rs92,200 crore," Department of Telecom (DoT) said at the end of Tuesday's bidding.
It did not give any specific reasons for the decline in the total bid value from Monday's levels.
The DoT said bidding is taking place in all bands and six rounds were completed on Tuesday.
On the fall in the bid amounts, government sources said that due to "increased activity in lower value spectrum like 1800 MHz the overall spectrum allocation has increased but the price has slightly moderated."
So far, 37 rounds of bidding have taken place in total of 18 circles across the 4 bands.
In 900 MHz band, there is a lull as operators are bidding in lower value spectrum like 1800 MHz band. 800 MHz and 1800 MHz band are witnessing aggressive bidding, sources said.
DoT said that "brisk bidding was seen on the sixth day of bidding, with activity requirement set at 100 per cent. There was activity in two new service areas in 1800 MHz band. There is a shift in activity from 2100 MHz and 900 MHz bands to 1800 MHz and 800 MHz bands."
With 100 per cent activity requirement and activity in new service areas, competitive bidding is expected to continue. There is still spectrum, which is yet to be sold.
Bidding would recommence today (Wednesday), it added.
The government on Saturday had crossed the targeted minimum amount of Rs82,000 crore from sale of airwaves.
Incumbents Bharti Airtel and Vodafone are locked with Reliance Jio to protect their spectrum they need to carry voice and data in the world's second-biggest smartphone market. In all, eight bidders are in the fray.
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