Jio, Airtel, Vodafone Idea to Compete in Rs. 96,317 Crore 5G Spectrum Auction
Reliance Jio, Bharti Airtel, and Vodafone Idea, India's leading private
telecom companies, have submitted their applications to participate in the
upcoming auction for 5G spectrum, according to a report by Economic Times. The
auction, scheduled for June 6th, will offer airwaves crucial for the
deployment of next-generation mobile services with a total value of Rs.
96,317.65 crore.
Who's Participating and What's at Stake:
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| 5G Spectrum Auction |
The Department of Telecommunications (DoT) received applications only from
these three established telecom operators. This year's auction comes after a
surprise bid from an Adani Group entity in the previous auction held in 2022.
The upcoming auction will offer spectrum across various bands, including 800
MHz, 900 MHz, 1800 MHz, and higher frequency bands like 26 GHz. Industry
analysts estimate that Airtel and Vodafone Idea will primarily focus on
renewing expiring licenses in specific regions, valued at around Rs. 4,200
crore and Rs. 1,950 crore respectively, unlike Reliance Jio which has no
urgent renewals this year.
Market Outlook and Auction Details:
Experts predict a cautious approach from major telecom operators due to their
existing holdings of 5G spectrum. They anticipate Airtel and Vodafone Idea to
engage in selective bidding to renew licenses in specific circles. Whereas,
Reliance Jio might be looking to expand its network capacity in certain areas.
The DoT has set regulations allowing operators to surrender acquired spectrum
after a minimum period and has waived off financial and performance bank
guarantees for bidders. Additionally, the acquired spectrum will be exempt
from spectrum usage charges, aligning with the recent telecom reforms
implemented in September 2021.
The application process will see DoT publish ownership details of the
applicants on May 10th. The deadline for withdrawing applications is May 17th,
followed by the announcement of the final bidder list on May 20th. Successful
bidders will have 10 days to deposit the amount after receiving the DoT demand
notice. The department will then issue a frequency assignment letter within 30
days of receiving the payment.
(Source)