Spectrum bids raise big funds for India |
On the first day of its new spectrum auction, the Indian government received bids worth 10.5 bn Dollars as against its expectation of 6.1 bn Dollars. India`s Communications Minister Ravi Shankar Prasad on March 1st said, "Total value of spectrum put to auction was 54.5 bn Dollars approximately, so against close to 54.5 bn Dollars, we have received biddings worth 10.5 bn Dollars,". He said the bidding took place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, and 2300 MHz bands, while there were no bidders in the 700MHz and 2500MHz bands on day one. The Ministry stated that a total of 2308.80 MHz spectrum is being put to auction, out of which there have been bids for 849.20 MHz so far. There were only three bidders - Airtel, Vi, and Reliance Jio - this year, as against seven bidders during the last spectrum auction in 2016. The spectrum bought will be valid for 20 years. In the 2016 spectrum auction, there were seven bidders, the spectrum sold was 41 percent by the quantity and 12 percent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37 percent and 19 percent, respectively, with 3 participants. The Earnest Money Deposit amount by Reliance Jio is the highest among the bidders at 1.36 bn Dollars, earning the highest eligibility points followed by Bharti Airtel at 408.7 mn Dollars and 64.7 mn Dollars by Vi. All the bidders have an option to pay upfront 50 percent of the final bid for 1800, 2100, 2300, and 2500 MHz bands, and the remaining amount can be paid in equated 16 installments over a period of two years at the interest rate of 7.3 percent, following the two years moratorium. For 700, 800 and 900 MHz bands, the upfront amount is 25 percent of the successful bid. The final bidders will also be required to pay three percent of the Adjusted Gross Revenue excluding wireline services as spectrum usage charges for the spectrum won through this auction.
|
|
|
|