Telecom major Reliance Jio got the biggest bid on Indian government’s two-day-held 4G spectrum auction on Tuesday as it picked up radiowaves worth ₹57,122.65 crore, said Telecom Ministry.
Meanwhile, 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, 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. A total of ₹77,814 crore is the value of overall bids received for 855.60 MHz spectrum.
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 – a response that the government had said was better than expected.
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.
“If you exclude 700, 2500 MHz spectrum, 60% of total spectrum is sold,” it said.
In terms of percentage of spectrum sold, 800 MHz – 65.22 percent, 900 MHz – 38.87 percent, 1800 MHz – 42.87 percent, 2100 – 8.57 percent, 2300 MHz – 89.29 percen
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.