The auction for radio waves used in mobile services had a subdued start on Tuesday, witnessing telecom companies bidding approximately Rs 11,000 crore after five rounds. The government had placed over 10,500 MHz spectrum across eight frequency bands — 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz, valued at Rs 96,238 crore at base price, up for auction.
Reliance Jio, Bharti Airtel, and Vodafone Idea (VIL) are competing for these crucial radio waves necessary for high-speed 5G mobile services, marking the first auctions in nearly two years.
The bidding primarily focused on the 900 MHz and 1,800 MHz bands, with additional interest in the 2,100 MHz band across three circles. Bharti Airtel and VIL are particularly looking to renew expiring spectrum in several circles, with strategic bids seen in the 900 MHz, 1,800 MHz, and 2,100 MHz bands.
On the first day, bids in the 1,800 MHz band reached approximately Rs 6,306.4 crore, while the 900 MHz band attracted bids worth Rs 4,465 crore, and the 2,100 MHz band saw bids worth Rs 360 crore, according to telecom expert Parag Kar. No bids were placed in the other five spectrum bands.
The auction, which resumes with the sixth round on Wednesday, saw initial interest from telecom operators in spectrum bands including 900 MHz, 1,800 MHz, 2,100 MHz, and 2,500 MHz. Analysts predict a relatively subdued bidding process compared to previous auctions, with a focus on spectrum renewals and strategic acquisitions.
In the 2022 auction, over Rs 1.5 lakh crore worth of 5G spectrum was sold, with Jio emerging as the top bidder. This year, Reliance Jio has deposited the highest earnest money of Rs 3,000 crore, indicating strong bidding potential, while Bharti Airtel and Vodafone Idea submitted Rs 1,050 crore and Rs 300 crore respectively.
Industry analysts anticipate Bharti Airtel to focus on renewing expiring spectrum, while Jio, already well-positioned across 4G and 5G bands, may adopt a selective approach. The auctions are expected to accelerate the rollout of 5G services nationwide, enhancing connectivity and economic opportunities, according to Cellular Operators Association of India Director General SP Kochhar.
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