In one of the shortest spectrum auction, which concluded in less than one-and-a-half days, Bharti Airtel sprang a surprise by acquiring the maximum airwaves at Rs 6,857 crore. It bought a total of 97 MHz spectrum in 900 MHz, 1800 MHz, and 2100 MHz bands.
This was also the first time since the auctions began in 2010 that the proceeds for the government came the lowest at Rs 11,340.8 crore. In 2022, the government had mopped Rs 1.5 trillion in the 5G spectrum auctions.
Reliance Jio, which was expected to bid the maximum considering its earnest money deposit was the highest, turned out at the third position, lower than Vodafone Idea by acquiring the least – it spent only Rs 973 crore to buy 14.4 MHz spectrum in the 1800 MHz band, according to data from the department of telecommunications.
In another surprise move, Vodafone Idea, which followed Airtel, bought spectrum worth Rs 3,510 crore. The company bought 30 MHz spectrum in 900 MHz, 1800 MHz, and 2500 MHz bands.
The reason for a muted response from Jio could be that it did not have any spectrum coming up for renewal, compared to peers Vodafone Idea and Bharti Airtel.
The bidding only took place in 900 MHz, 1800 MHz, 2100 MHz, and 2500 MHz bands.
Going by the 10,523 MHz spectrum on sale, only 1.3% got sold.
“Spectrum auction 2024 was part of a continuous allocation process that is transparent, robust and progressive. TSPs (telecom service providers) have taken spectrum not only for continuity of service but for expanding their services. The volume is limited because already a large part of the spectrum required was auctioned only last year,” communications minister Jyotiraditya Scindia said.
“We will continue the process with the clear objective of ensuring reliability and growth of telecom services in India,” Scindia added.
The government will now start with the process of allocating the spectrum to the telecom operators. The operators have the option to pay the spectrum in 20 equal installments.
Out of Rs 11,300 crore total auction spends by telcos, around 54 MHz spectrum worth Rs 5,000 crore has been purchased for renewal of services, whereas 87.2 MHz spectrum worth Rs 6,000 crore is for augmentation of services.
Gopal Vittal, MD and CEO of Airtel said, “Airtel continues to judiciously acquire the right amount of spectrum to deliver the best possible experience to our customers. In this auction, we have bolstered our sub-gigahertz and mid-band holding which will significantly improve our coverage, especially indoor”.
Out of the total spectrum acquired, Bharti Hexacom has acquired 15 MHz with an outlay of Rs 1,001 crore, Airtel said in an exchange filing.
Bharti Airtel had 42 MHz of spectrum in the 1800 MHz and 900 MHz bands up for renewal in six circles — UP (East), UP (West), West Bengal, Assam, Bihar, Jammu and Kashmir, and Odisha.
Airtel purchased 42 MHz spectrum in 900 MHz band, 35 MHz in 1800 MHz band, and 20 MHz in 2100 MHz band.
Vodafone Idea, which had renewal of spectrum in 900 MHz and 1800 MHz bands said, the company has also enhanced its 900 MHz spectrum holding in seven circles – Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, UP East and Kolkata, in addition to renewal.
This would enable it to dedicate adequate 900 MHz band spectrum for 4G thereby enhancing the indoor experience of its 4G customers in such markets.The company has also acquired 1800 MHz spectrum in Madhya Pradesh and 2500 MHz spectrum in Bihar, which will help in increasing the network capacity quickly, it said.
“This acquisition will enable us to effectively use dedicated sub GHz spectrum towards advanced technologies to enhance the experience we offer to our customers,” said Akshaya Moondra, CEO of Vodafone Idea.
The telecom operator purchased 18.8 MHz spectrum in 900 MHz band, 1.2 MHz in 1800 MHz band, and 10 MHz in 2500 MHz band.
Jio, said the company has consolidated its leadership position by acquiring the right to use spectrum in the 1800 MHz band in two circles – Bihar and West Bengal.
“We have already demonstrated our commitment to the Digital India Vision by rolling out one of the world’s fastest and widest standalone 5G networks within 12 months of allotment of spectrum,” said Akash M Ambani, chairman of Reliance Jio Infocomm.
With this acquisition, Jio has expanded its 1800 MHz band spectrum in two circles. Jio’s spectrum footprint has increased to 26,801 MHz (uplink + downlink), the company said.
Notably, West Bengal and Bihar circles in the 1800 MHz bands saw the maximum competition where bid price shot over the reserve price of spectrum.
