Back5G auction enters fourth day today
Demand in the 1800 Mhz band for the Uttar Pradesh East circle took bidding over the base price for the second consecutive day, with little signs of competition abating in the low band
PremiumTotal proceeds from the third day of spectrum auctions inched closer to the ₹1.5 trillion mark on Thursday, communications minister Ashwini Vaishnaw said, adding that the spectrum sale will continue on Friday.
“Spectrum auctions will continue tomorrow, seven rounds were conducted today, taking the total to 16 rounds over three days. Bids worth ₹1,49,623 crore have been received," the minister told reporters on Thursday.
Demand in the 1800 Mhz band for the Uttar Pradesh East circle took bidding over the base price for the second consecutive day, with little signs of competition abating in the low band.
The bid proceeds indicated that the government would net at least ₹14,843 crore or $18.6 million up front according to estimates from Credit Suisse. With higher bids, proceeds to government will increase proportionately.
At the end of 16 rounds on Thursday, telecom operators bid aggressively for key 5G bands, but industry insiders said spectrum would not go beyond the base price in majority of circles since a good quantity of airwaves is available this time.
UP East in the 1800 Mhz band was the sole circle where bidding moved beyond the base price, as per data released by the department of telecommunications.
Bidding was seen in all circles of 3.3 Ghz and 700 Mhz bands, indicating cumulative purchases being made in the 5G bands which have pushed the overall demand for airwaves to beyond 5.4 Ghz units of the total 7.4 Ghz that the government has put on sale this time, as per a Morgan Stanley note.
Bidding was also seen in the other sub-Ghz bands to meet incremental demand. Assam, J&K and North East circles in the 900 Mhz band and North East, Assam and J&K in the 800 Mhz bands saw additional bids.
In the 2100 Mhz band, bidding was seen in Kerala, Karnataka, Haryana, Gujarat, Delhi, West Bengal and Bihar, as per the Day 3 report, while prices increased by 0.5% in four circles of Kerala, Haryana, West Bengal and Bihar, ICICI Securities said in a note.
Punjab and Andhra Pradesh saw bidding in the 2500 Mhz bands as well.
Morgan Stanley said in a note that out of the total winning price, nearly 65% continues to be for 5G bands (3300Mhz and 26Ghz), with 27% for 700Mhz. The 1800MHz band contributed 6% and the 2% balance was from others, it added.
ICICI Securities said that price in the band went up by at least 7.7% during the auctions, as telcos bid for airwaves in the UP East, Rajasthan, Odisha, Mumbai, Maharashtra, Madhya Pradesh, Kolkata, Himachal Pradesh, Andhra Pradesh and Gujarat.
The firm added that Reliance Jio may well have bid for 130 Mhz in 3300MHz band in eight circles including Karnataka, Kerala, UP West, Rajasthan, Madhya Pradesh, Himachal Pradesh, North East and J&K.
Analysts at ICICI Securities said that Vodafone Idea may have increased its spectrum holding to 800 Mhz units in Kerala circle in 26GHz band.
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