Spectrum auction Day 1: Telecoms place bids worth about ₹11,000 crore in 5 rounds: 6 Key things to know

  • The Ministry of Communications has put over 10,500 Mhz spectrums worth 96,238 crore for auction, said the ministry in a press release.
  • Reliance Jio has deposited 3,000 crore, the highest amongst all three bidders.
  • The next phase will be held on Wednesday, June 26 for the remaining bands.

Anubhav Mukherjee
Updated25 Jun 2024, 08:52 PM IST
Spectrum auction: The government has put over 10,500 Mhz spectrum valued at  <span class='webrupee'>₹</span>96,238 crore on the block. Photo: Indranil Bhoumik/Mint
Spectrum auction: The government has put over 10,500 Mhz spectrum valued at ₹96,238 crore on the block. Photo: Indranil Bhoumik/Mint

Telecom operators have placed bids worth 11,000 crore on the first day of the spectrum auctions that saw five rounds of bidding, reported PTI quoting anonymous sources.

The Ministry of Communications has put over 10,500 Mhz spectrums worth 96,238 crore for auction, said the ministry in a press release.

“Telecom operators have placed bids of around 11,000 crore on Day 1. The auction will resume on Wednesday,” said a source familiar with the development to PTI.

Also Read | Mint Explainer: New telecom law gets partially notified. What next?

As per the data released by the Telecom department, spectrum bands of 900 Mhz and 1800 Mhz received the majority of bids from the companies.

Telecom companies like Bharti Airtel Limited, Vodafone Idea Ltd, and Reliance Jio Infocomm Ltd, were the three to take part in the Day 1 of spectrum auctions, according to the release.

Reliance Jio has deposited 3,000 crore, the highest amongst all three bidders as an earnest money deposit (EMD), which provides the strength to bid for maximum radiowaves amongst the three competitors. Bharti Airtel has deposited an EMD of 1,050 crore and Vodafone Idea of 300 crore for the same.

Also Read | Bharti Airtel in talks with Vodafone for majority stake in Indus Towers: Report

Here is what you need to know about it:

  1. The next phase of the auction will be held on Wednesday, June 26 for the remaining spectrum bands.
  2. Spectrum bands like 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz are going for auction, according to the Ministry of Communication.
  3. The primary focus of the two telecom giants Bharti Airtel and Reliance Jio has been the 900 Mhz and 1800 Mhz spectrum bands, worth 15619.6 crore and 21752.4 crore respectively.
  4. The spectrums will be assigned to the telecom companies for 20 years after the auction ends, and the lock-in period of a spectrum is a minimum of 10 years, after which it can be surrendered.
  5. The winners of the auction will be allowed to pay the amount due in 20 equal installments protecting the Net Present Value (NPV) at an interest rate of 8.65 per cent.
  6. The companies will not have to pay any Spectrum Usage Charges (SUC) for the spectrums acquired from this auction, and the winners of the auctions will not have to submit any form of Financial Bank Guarantee (FBG) or a Performance Bank Guarantee (PBG).

 

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:25 Jun 2024, 08:52 PM IST
HomeIndustryTelecomSpectrum auction Day 1: Telecoms place bids worth about ₹11,000 crore in 5 rounds: 6 Key things to know

Most Active Stocks

Bandhan Bank

198.65
10:07 AM | 16 JUL 2024
3.3 (1.69%)

Oil & Natural Gas Corporation

326.70
10:07 AM | 16 JUL 2024
4.15 (1.29%)

Tata Steel

168.70
10:07 AM | 16 JUL 2024
1.9 (1.14%)

Indian Oil Corporation

171.95
10:07 AM | 16 JUL 2024
2.35 (1.39%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

HBL Power Systems

671.00
10:02 AM | 16 JUL 2024
40.95 (6.5%)

Godawari Power And Ispat

1,181.65
10:02 AM | 16 JUL 2024
65.15 (5.84%)

Sunteck Realty

642.00
10:02 AM | 16 JUL 2024
34.5 (5.68%)

Tata Teleservices Maharashtra

81.37
10:02 AM | 16 JUL 2024
4.27 (5.54%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,318.00-453.00
    Chennai
    74,755.00928.00
    Delhi
    75,266.001,294.00
    Kolkata
    75,047.001,002.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.01
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumMint Shorts