5G spectrum auction concludes with Rs 11,300 crore in telecom bids

The 5G spectrum auction for mobile radiowave services concluded with bids worth around Rs 11,300 by telecom firms on Wednesday, reported The Economic Times.

The Rs 96,000 crore spectrum auction for 5G airwaves began on Tuesday, featuring eight bands. A total of 10 GHz of radio waves were available for purchase, covering frequencies from 800 MHz to 26 GHz.

Bharti Airtel emerged as the biggest bidder in the Rs 96,000 crore 5G spectrum auction, which concluded in seven rounds.

Bharti Airtel has likely acquired airwaves in the 900 MHz, 1800 MHz, and 2100 MHz bands.

Reliance Jio’s participation in the auction was limited, with the market leader possibly purchasing 5G bandwidth in the 1800 MHz band.

Vodafone Idea (Vi) is believed to have secured spectrum in the 900 MHz, 1800 MHz, and 2500 MHz bands.

Airtel and Vi followed a predictable strategy, acquiring spectrum in areas where their licences are expiring this year. Additionally, Airtel, led by Sunil Mittal, acquired more 900 MHz airwaves to strengthen its sub-GHz spectrum, where it falls behind Jio.

Airtel is also thought to have selectively topped up on 2100 MHz airwaves in key markets to enhance its mid-band spectrum holdings. This move aims to expand its 5G coverage across the country and improve its 4G networks in rural areas.

Jio’s limited bidding activity was anticipated as it does not face any imminent spectrum renewals. Analysts believe that Jio focused on increasing its mid-band 5G airwaves in the 1800 MHz band to support its 4G and 5G coverage.

“Bharti seems to have spent much more than our expectation. This would be attributed to renewal and top-up in some circles, as in spending Rs 4200 crore on 900 MHz (41.4 MHz across 12 circles), Rs 700 crore on 1800 MHz (10.2 MHz across five circles) and top-up airwaves in the 2100 MHz band to the tune of Rs 500 crore (20 MHz in four circles),”said a research note from Motilal Oswal.

In contrast, the note stated, “Jio’s participation was limited, spending around Rs 1900 crore on 26.6 MHz of 1800 MHz band spectrum in six circles.”

Motilal Oswal estimates that Vi likely spent around Rs 2300 crore in the recently concluded sale for renewals and top-ups in some circles.

This includes Rs 1900 crore for 900 MHz (14 MHz across five circles), Rs 300 crore for 1800 MHz (4.4 MHz in two circles), and approximately Rs 150 crore for a top-up of 10 MHz in the 2500 MHz band.

This year, the government offered 10.5 GHz of 5G airwaves, valued at Rs 96,238.45 crore at reserve prices. The total bids received were similar to what was received on Tuesday, with only 140-150 MHz estimated to have been sold.

The final revenue collection for the government is lower than the record Rs 1,50,173 crore collected in the July 2022 5G auction and even below the Rs 77,814 crore collected in the March 2021 4G auction.