Capital Gain

Half of telecom spectrum sold goes to Reliance Jio at Rs 57,122 crore

Published: in BUSINESS, , , , , , , , , , , , , , , , , by .

has emerged the highest bidder in the 4G auction, which concluded on Tuesday in just six rounds, beating incumbents and by a wide margin. The Centre would get Rs 77,815 crore from the two-day auction — one of the shortest in a decade. While the amount has exceeded the government expectation, the total mop-up is far below the Rs 3.92 trillion worth of airwaves put up for sale.

Spectrum has been sold across a few preferred bands at the base price. In fact, on Tuesday, the total bid amount inched up by less than Rs 700 crore from the previous day’s close at Rs 77,146 crore.

has bagged more than 50 per cent of the total quantum of airwaves sold by paying Rs 57,122.65 crore. Of the 855.6 megahertz of spectrum sold, Jio has got 488 megahertz. The company spent more than 60 per cent of this amount on buying spectrum in the 800 Mhz band — the next best bet after the most expensive 700 Mhz band which went unsold once more. bought Rs 18,698.75 crore worth of spectrum with the bulk of its purchase in the 2300 Mhz band. Financially-stressed purchased the least amount of spectrum at Rs 1,993.40 crore.

The hopes to garner Rs 19,000-20,000 crore as upfront payment from this auction before the end of the current financial year.

ALSO READ: Spectrum auctions: Jio says total owned airwaves footprint up significantly

“We want to ensure that we keep on enhancing experiences, not only for our existing customers, but also for the next 300 million users who will move to digital services. With our increased spectrum footprint, we are ready to further expand the digital footprint in India as well as get ourselves ready for the imminent 5G rollout,” Mukesh D Ambani, Chairman, Reliance Industries, said in a statement.


Bharti Airtel, which had earlier said that it would bid for 4G to fill in its spectrum gaps, believes the latest auction would enable it to continue delivering quality mobile broadband experience. ‘’We are most excited at bringing the power of Airtel services to an additional 90 million customers in India through the power of our Pan India Sub GHz footprint,” Gopal Vittal, MD & CEO (India & South Asia), Bharti Airtel, said in a statement.

ALSO READ: Airtel buys Rs 18,699-cr radiowaves; Voda acquires spectrum in 5 circles

too issued a statement to say the company had used the auction opportunity to optimize spectrum holding and create further efficiencies in some circles.

The auction results will be scrutinised by an inter-ministerial panel and reviewed by finance and telecom ministers. The exercise is expected to be completed in the next 10 days, after which the will be given another 10 days to deposit the upfront amount.

“Keeping the current scenario in mind, we had anticipated to get Rs 45,000-50,000 crore from these auctions as a lot of the spectrum on offer is renewal spectrum,” Telecom Secretary Anshu Prakash told reporters.

Of the total available spectrum of 2308 megahertz, 855.60 megahertz was sold in the auctions. A total of 37 per cent of the spectrum by quantity and 19 per cent by value was sold.

Nearly 65 per cent of the 800 Mhz spectrum on offer and 89 per cent of the airwaves offered in the 2300 Mhz band were sold. Both 2500 Mhz and 700 Mhz — premium spectrum — went unsold. The industry had opposed the steep reserve price recommended by the Telecom Regulatory Authority of India (Trai) in certain bands.

The last spectrum auctions were held in October 2016, fetching the government Rs 65,789 crore in revenue.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link


Leave a Reply

Your email address will not be published. Required fields are marked *