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Spectrum Auction 2021 concludes

 

Today was the second and concluding day of Spectrum Auction 2021.

"The value of the spectrum for which there are winning bids is Rs 77,814.80 crore. Hence, incremental bids for Rs 668.20 crore were made today," said Anshu Prakash, Secretary, Department of Telecommunications, Ministry of Communications, at the conclusion of the auction. The auction, which began on 1st March 2021, concluded today at 12.45 pm, after a total of 6 rounds of bidding. The e-auction was based on the Simultaneous Multiple Round Ascending Auction (SMRA) methodology.

Mr Anshu Prakash informed that bidding took place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. The total quantity of spectrum for which right to use has been acquired in these bands is 855.60 MHz. 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.

Three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance JioInfocommLtd – participated in the auction.

Bidder-wise details of quantity of spectrum acquired and amounts payable are as follows:

Bidder - Total quantity (MHz) - Total amount (Rs crore)

Bharti Airtel Ltd - 355.45 - 18,698.75

Vodafone Idea Ltd - 11.80 - 1,993.40

Reliance JioInfocomm Ltd - 488.35 - 57,122.65

A total quantity of 2308.80 MHz spectrum was put to auction, including spectrum that is expiring up to December 2021. Of this quantity, bids were received for 855.60MHz of the spectrum. Excluding spectrum in 700MHz and 2500MHz bands, this is about 60 per cent of the spectrum put to auction. In the 2016 spectrum auction, where there were 7 bidders, the spectrum sold was 41 per cent by the quantity and 12 per cent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction are 37 per cent and 19 per cent respectively, with 3 participants.

The quantity of spectrum put to auction and the spectrum acquired in different bands is as follows:

Band - Quantity put to auction (MHz) - Quantity acquired (MHz) - Percentage

700 MHz (paired) - 660 - 0 - 0

800 MHz (paired) - 230 - 150 - 65.22

900 MHz (paired) - 98.80 - 38.40 - 38.87

1800 MHz (paired) - 355 - 152.20 - 42.87

2100 MHz (paired) - 175 - 15 - 8.57

2300 MHz (paired) - 560 - 500 - 89.29

2500 MHz (paired) - 230 - 0 - 0

Total - 2308.80 - 855.60 - 37.06

Spectrum Usage Charges (SUC) for the spectrum acquired in this auction will be payable at the rate of 3 per cent of Adjusted Gross Revenue (AGR) of the licensee, excluding revenue from wireline services.

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.

#SpectrumAuction
02-March-2021
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Bid amount exceeds Rs 77,000 crore on Day 1 of Spectrum Auction 2021

 

Auction of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands commenced at 10 am yesterday and four rounds of bidding took place till 6 pm. Another one or two rounds are expected to be conducted today following which the auction will conclude.

Details of the Spectrum Auction:

  1. Three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm – are participating in the auction.
  2. The value of the spectrum for which there are provisional winning bids is Rs 77,146 crore. This has already substantially exceeded pre-bid estimates of Rs 45,000 crore.
  3. Bidder-wise details of quantity won and amounts payable will be available only after the conclusion of the auction.
  4. The e-auction is based on the Simultaneous Multiple Round Ascending Auction (SMRA) methodology. Available spectrum in all bands is simultaneously put to auction in all the Licensed Service Areas (LSAs).
  5. Bidding has taken place for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. The participants did not bid in 700 MHz and 2500 MHz bands.
  6. 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. Excluding spectrum in 700 MHz and 2500 MHz bands, this is almost 60 per cent of the spectrum put to auction. (In the 2016 spectrum auction, where there were 7 bidders, the spectrum sold was 41 per cent by the quantity and 12 per cent by value of the total spectrum put to auction. The corresponding figures in the 2021 spectrum auction so far are 37 per cent and 19 per cent respectively, with 3 participants.)
  7. The spectrum which will be assigned to the successful bidders is valid for 20 years.
  8. In 700 MHz, 800 MHz, and 900 MHz bands, bidders are required to pay 25 per cent of the final bid amount as an upfront payment. In the rest of the bands, bidders are required to make a payment of 50 per cent of final bid amount upfront. The balance amount (after upfront payment) will be payable in 16 equated annual instalments after a moratorium of 2 years.

#SpectrumAuction
02-March-2021
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Cabinet approves Auction of spectrum

 

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a proposal of the Department of Telecommunications to conduct spectrum auction through which spectrum will be assigned to the successful bidders for providing commercial mobile services.

The auction will be for spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz frequency bands. Spectrum will be offered for an assignment for a validity period of 20 years. A total of 2251.25 MHz is being offered with a total valuation of Rs 3,92,332.70 crore (at reserve price).

By winning the right to use spectrum through the auction, incumbent telecom service providers will be able to augment their network capacity whereas new players will be able to start their services.

In the auction, bidders will have to comply with parameters/conditions e.g. block size in which bidders will be able to submit their bids, spectrum cap i.e. the maximum amount of spectrum that can be held by each bidder after the completion of the auction, roll-out obligations, payment terms etc.

Successful bidders may pay the entire bid amount in one go (upfront) or may 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 and the remaining amount in a maximum up to 16 equated annual instalments, after a moratorium of two years.

In addition to the bid amount, successful bidders will also have to pay 3% of the Adjusted Gross Revenue (AGR) excluding wireline services as spectrum usage charges for the spectrum won through this auction.

#UnionCabinet #SpectrumAuction
16-December-2020