The government is expected to mop up a maximum of Rs 1.95 trillion through the spectrum auctions, if earnest money deposit (EMD) made by telecom operators is any indication.
The total quantum of spectrum across different bands being put up for auction is 72 Ghz, which, at reserve price is worth Rs 4.3 trillion. The government will be able to raise only half of the total amount on sale, meaning a large quantum of spectrum will once again remain unsold.
Based on EMD, only Reliance Jio is likely to bid for the expensive 700 Mhz band, while Bharti Airtel and Vodafone Idea may give it a miss. The entire quantum of 700 Mhz had remained unsold in the previous two auctions.
The EMD numbers show that Reliance Jio has deposited the maximum of Rs 14,000 crore, followed by Bharti Airtel which has deposited Rs 5,500 crore, and Vodafone Idea Rs 2,200 crore. Reportedly, Adani Data Networks will only go for 26 Ghz, which is the millimetre band, as that is ideal for private network solutions.
Industry executives said telecom operators can target eight to nine times their respective EMD in the best-case scenario. Going by this estimate, the outflow of Jio is likely to be Rs 1.27 trillion, Bharti’s Rs 48,000 crore, and Vodafone Idea’s Rs 20,000 crore.
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