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| Spectrum Auction: 2021- Bid the amount exceeds Rs 77,000 crore on Day 1 |
New Delhi (Lisbon Times):- Pursuant to the Notice
Inviting Applications (NIA), auction of spectrum in 700 MHz, 800 MHz, 900 MHz,
1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands commenced at 10 AM today. Four
rounds of bidding took place till 6 PM. Another one or two rounds are expected
tomorrow.
Three bidders – Bharti
Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm – are participating in
the auction.
The value of the
spectrum for which there are provisional winning bids is Rs. 77,146 crores. This
has already substantially exceeded pre-bid estimates of Rs. 45,000 crore.
Bidder-wise details of
quantity won and amounts payable will be available only after the conclusion of the
auction.
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).
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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.
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% of the spectrum put to auction. In the 2016 spectrum auction, where there
were 7 bidders, the spectrum sold was 41% by the quantity and 12% by value of the
total spectrum put to auction. The corresponding figures in the 2021 spectrum
auction so far are 37% and 19% respectively, with 3 participants.
The spectrum which will be
assigned to the successful bidders is valid for 20 years.
In 700 MHz, 800 MHz,
and 900 MHz bands, bidders are required to pay 25% of the final bid amount as an upfront payment. In the rest of the bands, bidders are required to make payment
of 50% of the final bid amount upfront. The balance amount (after upfront payment)
will be payable in 16 equated annual installments after a moratorium of 2 years.
The auction will resume tomorrow morning and is expected to conclude tomorrow.
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