5G auction: Bid amount exceeds Rs. 1.45 trn on 1st day of bidding, says govt
- IBEF
- July 27, 2022
On the first day of India's largest-ever spectrum auction, companies owned by business moguls Mr. Mukesh Ambani, Mr. Sunil Bharti Mittal, and Mr. Gautam Adani spent over Rs 1.45 trillion (US$ 18.15 billion) to purchase fifth-generation (5G) airwaves. The first day of the auction's response, according to Minister of Railways, Communications and Electronics & Information Technology Mr. Ashwini Vaishnaw, exceeded all predictions and would break previous records. In 2015, the auction's revenue collection was Rs. 1.09 trillion (US$ 13.64 billion).
Even the 700 MHz band, which had not attracted any bidders in the 2016 or 2021 auctions, saw activity this time. Industry observers said that, according to statistics released by the telecom department, tentative bids of Rs. 39,270 crore (US$ 4.91 billion) were received on the first day of the auction for the highly sought-after 700 MHz band. All four applicants—Reliance Ambani's Jio, Mittal's Bharti Airtel, Vodafone Idea, and a company affiliated with the Adani Group—"actively" participated in the 5G spectrum auction. 5G offers ultra-high speeds (roughly 10 times faster than 4G), lag-free connectivity, and the ability for billions of connected devices to share data in real-time.
The first day's bidding and demand exceeded the government's internal expectations of Rs. 80,000 crore (US$ 10.01 billion) by more than 80%. The minister conceded that the response had gone "way above our expectations." He stated that based on current participation levels, auctions will exceed the planned allocations. He stated that the government will allot the spectrum in record speed, and that 5G services will begin to roll out in the September-October period. The goal is to allot the spectrum by August 14-15, he added.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
