The biggest ever telecom auction of 2G and 3G airwaves has got a good start with operators making aggressive bids worth an estimated Rs 60,000 crore after six rounds of bidding in all four bands. The government is selling airwaves in four bands: 2,100 megahertz (Mhz), 1,800 MHz, 900 MHz and 800 Mhz and a total of 380.75 MHz of spectrum is on offer in the premium 900 MHz band, 1,800 MHz and 800 MHz while 5 MHz is up for bidding in the 2,100 MHz band across 17 out of 22 telecom areas or circles in the country.
Although, the government cannot not release results of the auction because of a court ruling, but viewing the aggressive bid till sixth round only, it can to raise over its expected Rs 82,000 crore, as value of approximately Rs 60, 000 crores was committed by bidders against the value (at reserve price) of around Rs 49,000 crores of provisionally won spectrum.
It has been reported that 900 Mhz and 2,100 MHz bands witnessed good bidding, while 800 MHz band too drew lot of interest. However, there was not much bidding in Mumbai, Delhi and Karnataka circles in the 2,100 MHz band. The bidding process, which starts at 9 am each day through 7.30 pm, will continue till the time all spectrum on the block is sold or no companies bid for any spectrum in any band in any circle.
Mobile licences for Idea Cellular’s nine circles, Airtel’s six circles and seven circles each of Vodafone and Reliance Telecom are up for renewal. It is mandatory for these companies to bid for spectrum if they have to continue offering mobile and other telecom services.