HomeScience & TechTechnology Focus: The telecom department is expecting ₹70,000 to ₹1,00,000 from the...

Technology Focus: The telecom department is expecting ₹70,000 to ₹1,00,000 from the auctions in 5G spectrum auction

All eyes are on the ongoing 5G spectrum auction, creating immense curiosity as to who will win the 72 gigahertz radio wave rights worth ₹4.3 crore on offer.The bidding started at 10 am and will continue till 6 pm, PTI reported. Four players Reliance Jio, Bharti Airtel, Vodafone Idea and billionaire Gautam Adani’s flagship unit Adani Enterprises are participating in the auction.

5G spectrum auction

 Telecom department expects ₹ 70,000 to ₹ 1,00,000 from the auctions. The number of auction days will depend on the actual demand for radio waves.The auction will be held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), medium (3300 MHz) and high (26 GHz) frequency bands.

Mukesh Ambani’s Reliance Jio is expected to lead spending, followed by Bharti Airtel, while analysts see limited participation from Vodafone Idea and Adani Group. Jio has made an Earnest Money Deposit (EMD) of ₹14,000 crore, while rival Adani Group has recently made a modest deposit of ₹100 crore.The EMD itself reflects the amount of radio waves that a company can bid for in an auction. The EMD of all four 5G radio wave bidders this time adds up to ₹21,800 crore, a level significantly higher than the ₹13,475 crore deposited in the 2021 auction where three players participated.

 As part of the list of pre-qualified bidders, Reliance Jio submitted an EMD of ₹ 14,000 crore, the highest among the four players in the spectrum battle, according to information released by the department on July 18. Adani Data Networks’ EMD amount stands at ₹ 100 crore, an amount in itself indicative of subdued and limited demand for spectrum from its side. Earlier this month, billionaire Gautam Adani’s group confirmed it would compete for spectrum it said would be used to build a private network to support his businesses from airports to power and data centers. The Adani Group has made it clear that its intention is not to be in the consumer mobility space.

 For the upcoming auction, Sunil Mittal-led Bharti Airtel is likely to limit its bid to 5G spectrum – 100 MHz in the 3.5 GHz band and 500 MHz in the 26 GHz band; may selectively add spectrum in the 900 MHz and 1800 MHz bands in circles such as Delhi, Mumbai and Kolkata, among others, Bloomberg reported. Telecom companies have the ability to use airwaves worth up to 7-8 times the amount of EMD they send, although players tend to retain room for maneuver and flexibility based on how the auction is conducted and the strategies adopted by opponents.

 India also allowed firms to pay in 20 equal installments with no upfront payment as it tries to catch up with other countries such as South Korea and China, which have had 5G networks for years, Bloomberg reported.As part of the list of pre-qualified bidders, Reliance Jio submitted an EMD of ₹ 14,000 crore, the highest among the four players in the spectrum battle, according to information released by the telecom department on July 18.

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