- Telecom operators bid for ₹11,000 crore of spectrum on the first day.
- Focus was on the 900 MHz and 1800 MHz bands, with some interest in the 2100 MHz band.
- The auction is expected to see about 17% of the spectrum value sold, the lowest since 2014.
The first day of India‘s spectrum auction saw bids totaling ₹11,000 crore, a small fraction of the ₹96,320 crore worth of airwaves on offer. Operators primarily showed interest in the 900 MHz and 1800 MHz bands, with minor activity in the 2100 MHz band.
Despite the tepid start, the auction could see competitive bidding in certain circles due to upcoming spectrum renewals for operators like Airtel and Vodafone Idea. Analysts predict that only 17% of the spectrum value will be sold, marking the lowest participation since 2014.
Spectrum Auction Sees Lukewarm Response with Initial ₹11,000 Crore Bids
The latest spectrum auction in India began with telecom operators bidding for ₹11,000 crore worth of spectrum on the first day. This figure is modest compared to the total ₹96,320 crore worth of airwaves available. Bidding activity focused on the 900 MHz and 1800 MHz bands, with some interest in the 2100 MHz band.
This auction contrasts sharply with the 2022 auction, which saw record sales driven by the introduction of 5G spectrum. In 2022, 72,097.85 MHz of spectrum was sold for ₹1.5 trillion. The current auction does not include separate revenue details from spectrum sales in the interim budget, though the telecom sector’s revenue is projected at ₹1.2 trillion for FY25.
Analysts expect that only about 17% of the spectrum value will be sold this year, the lowest participation since 2014. The lower turnout is partly due to operators’ focus on spectrum renewals rather than new acquisitions. Airtel and Vodafone Idea, both of which need to renew airwaves, are driving much of the bidding activity.
Reliance Jio, Bharti Airtel, and Vodafone Idea have made earnest money deposits totaling ₹4,350 crore, allowing them to bid for up to 12 times that amount. Notably, while Airtel and Vodafone Idea have imminent spectrum renewals, Jio does not. This dynamic influences the competitive landscape of the auction, with Jio’s participation likely focusing on strategic rather than renewal needs.
As the spectrum auction progresses, the focus will remain on how operators strategize their bids to secure necessary airwaves while managing costs, potentially influencing the telecom landscape significantly.
“Telecom operators are focusing on strategic spectrum acquisitions to optimize their existing networks rather than expansive new investments.”
