On the first day, telcos bid totalling almost Rs 11,000 crore for 5G spectrum auction

On day one of the five-round 5G spectrum auction, bids totalling more than Rs 11,000 crore were made by Indian private telecom providers. Today, the bidding will continue. The airwaves being sold by the Indian government are valued at Rs 96,317.65 crore. 900 MHz, 1800 MHz, 2100 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands have attracted attention from telecom businesses on June 25, according to the Department of Telecommunications' Day 1 report.

Spectrum bought in this auction will be valid for 20 years. Telcos can share, trade, lease, and surrender the spectrum after 10 years.

Telcos might opt to pay the full amount upfront to save on interest costs. The interest rate for deferred payments in this auction is 8.65 percent, higher than the 7.2 percent rate in the 2022 auction. For them, payment options include part payments with corresponding moratoriums or 20 yearly instalments, with the first due 10 days post-auction. Pre-payment is allowed without penalty.

In the 2022 auction, the government garnered a record Rs 1.5 lakh crore. Reliance Jio, Bharti Airtel Ltd, and Vodafone Idea submitted Rs 4,350 crore as earnest money deposits. Reliance Jio deposited the highest Rs 3,000 crore, Bharti Airtel Rs 1,050 crore, and Vodafone Idea Rs 300 crore.

Telcos can bid three to four times the amount based on their earnest money deposits.

Bharti Airtel could emerge as the biggest spender in the 2024 spectrum auction with an outlay of Rs 10,400 crore as the telecom major aims to firm up its sub-1GHz holdings and raise its share of 1800-MHz and 2300-MHz bands, according to analysts. It is facing renewals for 42 MHz of spectrum in six circles of Assam, Bihar, J&K, Orissa, UP East, and West Bengal.

COAI, the representative body for private telecom companies, said the ongoing 5G spectrum auction will help catalyse the rapid rollout of 5G services across the country, leading to enhanced coverage and vastly improved connectivity.

“The 5G auctions will catalyse the rapid rollout of 5G services across the country, leading to enhanced coverage and vastly improved connectivity. Moreover, successful deployment of 5G will be a major stride towards achieving digital inclusion," said SP Kochhar, Director-General of COAI.