The Latest Spectrum Auction Ends with Bharti Airtel Leading the Pack
The most recent spectrum auction, aimed at selling airwaves to mobile companies, concluded in just two days. Bharti Airtel, led by Sunil Bharti Mittal, emerged as the top buyer, acquiring nearly 60% of the total Rs 11,341 crore worth of spectrum that was sold.
Out of the 533 Mhz of spectrum on offer, only 141 Mhz was sold after seven rounds of bidding. Bharti Airtel secured 97 Mhz across three bands, followed by Vodafone with 30 Mhz and Reliance Jio with 14.4 Mhz.
While the auction revenue fell short of the government’s estimates, an over Rs 2 lakh crore dividend bonanza from the RBI will more than make up for the shortfall. The government had offered a total of 10 GHz of spectrum, valued at Rs 96,238 crore at the base price. However, there were no takers for at least three of the frequencies, generating only 12% of the base price.
Bharti Airtel and Vodafone Idea successfully renewed their expired spectrum in the 900 MHz and 1,800 MHz bands. Additionally, telcos acquired an extra 87.2 MHz worth Rs 6,165 crore to enhance their services.
Communications Minister Jyotiraditya Scindia emphasized that the spectrum auction was part of a transparent and progressive allocation process. He stated that telecom service providers acquired spectrum not only for service continuity but also for expanding their offerings.
In certain regions like West Bengal and Bihar, bids exceeded the reserve price in the 1,800 MHz band. The muted response was attributed to the ongoing monetization of 5G spectrum auctioned in August 2022.
Companies strategically purchased spectrum to bolster their existing holdings. Bharti Airtel’s MD & CEO, Gopal Vittal, highlighted the importance of acquiring sub-giga hertz and mid-band spectrum to improve coverage, especially indoors.
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Telecom companies strategically bid in the recent spectrum auction to enhance 5G services rollout nationwide. The auction saw lower earnest money deposits, signaling a focused approach towards acquiring spectrum for improved connectivity and coverage. Reliance Jio, Bharti Airtel, and Vodafone Idea actively participated in securing radio waves for high-speed mobile services.
Participated in a recent two-day auction for radiowaves, falling short of the government’s minimum value estimate. The event garnered bids totaling only Rs 11,340 crore for 10 GHz of spectrum. Previously, in a seven-day 2022 auction, over Rs 1.5 lakh crore worth of 5G spectrum was sold, with Jio emerging as the top bidder.
