Bharti Airtel picked up radiowaves worth ₹18,699 crore in the just-concluded auction, while rival Vodafone Idea bought spectrum worth ₹1,993.40 crore
A total of ₹77,814 crore is the value of overall bids received, the govt added
Telecom major Reliance Jio got the biggest bid on Indian government's two-day-held 4G spectrum auction on Tuesday as it picked up 488.35 MHz radiowaves worth ₹57,122.65 crore, said Telecom Ministry.
Meanwhile, Bharti Airtel picked up 355.45 MHz radiowaves worth ₹18,699 crore in the just-concluded auction, while rival Vodafone Idea bought 11.80 MHz spectrum worth ₹1,993.40 crore, the ministry added.
Meanwhile, Telecom Department Secretary Anshu Prakash announced that the spectrum auction concluded today at 12.45 pm with 6 rounds of bidding and also added that the response of the bids were "better than expected." A total of ₹77,814 crore is the value of overall bids received for 855.60 MHz spectrum.
The participants did not bid in 700 MHz and 2500 MHz bands. Four rounds of bidding (two each with stipulated activity levels of 80 % and 90%) took place on 01.03.2021. Two rounds of bidding with stipulated activity level of 100% took place today, Prakash informed.
On Monday, the opening day, bids worth ₹77,146 crore had come in with Reliance Jio, Bharti Airtel, and Vodafone Idea participating in the bidding process.
Through the auction, government said it will "receive revenue of about ₹19,000 crore to ₹20,000 crore in FY21."
"We expect this exercise to take about 10-15 days. Upfront payment of over ₹15,000 crore is expected this fiscal. Balance ₹10,000 crore-11,000 crore to come by next fiscal," it said.
Spectrum Usage Charge levied on the spectrum sold will be 3%, the depratment added.
The auction is concluded and these provisional results are subject to scrutiny and approval by the Government.
"With the deployment of additional spectrum acquired in this auction in the networks of Telecom Service Providers, the Quality of Service and customer experience of telecom consumers across the country are expected to improve," the minstry said in a statement.
Over 2,250 MHz of spectrum, that carry telecom signals, in seven bands worth nearly ₹4 lakh crore at the reserve or start price, was offered for bidding in the auction that began on Monday.
Bids were received in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands but there were no takers for the airwaves in the premium 700 and 2500 MHz bands.
About one-third of the spectrum being auctioned is in the 700 MHz band, which was completely unsold during the 2016 auctions.
Spectrum will be offered for assignment for a validity period of 20 years. Successful bidders can pay entire bid amount in one go (upfront), or exercise an option to pay a certain amount (25% for spectrum won in 700 MHz, 800 MHz, 900 MHz bands or 50% for spectrum won in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront with remaining amount in a maximum up to 16 equated annual instalments, after a moratorium of two years. The government will get ₹12,000-13,000 crore in the current financial year and nearly the same amount is expected in the next fiscal.