5G telecom spectrum auctions end. Here’s all we know so far
The mega 5G telecom spectrum auction has ended and the government has provisionally raised a little over Rs 1.5 trillion.
Billionaire Mukesh Ambani’s Reliance Jio is expected to have bagged the biggest chunk of the spectrum on offer, followed by Sunil Bharti Mittal-led Bharti Airtel and then Vodafone Idea.
Even new entrant, the Adani Group, has bagged 5G spectrum in the 26GHz band, although it will only be using the bandwidth for captive networks and not for a commercial rollout.
How much money did each of the three big telecom companies spend on the auctions?
While the official figures are not yet out, analysts estimate that Jio’s aggregate spectrum buys is upward of Rs 84,500 crore, while Airtel’s were estimated above Rs 46,500 crore. Vodafone Idea’s spends are pegged over Rs 18,500 crore, while Adani is said to have spent Rs 800-900 crore.
But why is Adani’s bid so significant despite its small size?
Adani’s bid is significant as the Gautam Adani-led group has never been a telecom player and this small entry could herald its foray into the market.
If Adani does eventually enter the consumer mobile service market, it will be a direct challenger to Ambani’s Jio, which has overtaken much older players like Airtel and Vodafone Idea, which have been in the Indian market for more than two decades now.
Adani’s entry is also important as the group has been entering other sectors such as cement and copper, in which it has had no past history of doing business.
Which geographies saw the most aggressive bidding?
According to a report by The Economic Times, the auctions over the last few days were driven by intense bidding for 1800 MHz airwaves in the key Uttar Pradesh (East) market.
The per unit price of 1800 MHz spectrum in the UP-East circle jumped to Rs 160.57 crore — almost 76.5% higher than its Rs 91 crore per MHz base price.
The current auction price for 1800 MHz in the circle is also well above the Rs 153-crore per MHz base price of the March 2021 sale.
By when will the final numbers on the telecom spectrum auctions be known?
The final numbers will be known by sometime later on Monday when the government makes an official announcement on the same.
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