The Department of Telecom, in a notice issued on Friday, March 8, 2024, has initiated the process for the upcoming spectrum auction scheduled to commence on May 20.
The government is set to conduct an auction for eight spectrum bands tailored for mobile phone services, with a base price starting at Rs 96,317.65 crore, equivalent to $11.6 billion.
This auction encompasses spectrum held by certain companies undergoing insolvency proceedings, as well as frequencies slated to expire within this year.
In a decision made in February, the Union Cabinet granted approval for these auctions and interim allocations to telecom operators. All spectrum available in the 800, 900, 1800, 2100, 2300, 2500, 3300 MHz, and 26 GHz bands will be made available for bidding.
With a total of 10 GHz of radiowaves on offer, this auction presents a lower quantum compared to previous auctions, as telecom firms have already secured sufficient spectrum to meet their bandwidth needs.
Interested entities can submit applications for spectrum until April 22, following which a mock auction is slated for May 13 and 14, leading up to the official auction kick-off on May 20.
Market analysts anticipate a relatively subdued auction, given that major Indian telecom players currently have ample airwaves to address their 5G requirements.
According to industry experts cited by ET, selective purchasing is expected from Bharti Airtel and Vodafone Idea, primarily for the renewal of airwaves in specific circles. Additionally, the Adani group might seek to acquire airwaves in lower spectrum bands.
The forthcoming auctions are anticipated to be advantageous for Reliance Jio, Bharti Airtel, and financially strained carrier Vodafone Idea.
In the previous spectrum auction in 2022, Jio emerged as the highest bidder, spending over $11 billion on airwaves, significantly contributing to government revenue.
Due to stiff competition in the telecom sector, analysts foresee that bids for additional airwaves may not reach previous highs, potentially impacting the overall auction size. Airtel and Vodafone Idea have impending airwave renewals in specific regions, while Reliance Jio's spectrum renewals are not scheduled for this year.
Airtel's spectrum in five circles expired on February 9, with another set to expire in March, while Vodafone Idea's spectrum in West Bengal and UP West also expired, necessitating approvals for continued usage. Additionally, the Cabinet sanctioned reallocation and additional allocation of spectrum for transportation systems to enhance passenger safety.
