Telecom spectrum auction sees subdued start with Rs 11,000 crore bids on day 1

New Delhi: The auction of mobile service radio waves commenced with subdued activity on Tuesday, as telecom companies bid approximately Rs 11,000 crore in five rounds.

The government has placed over 10,500 MHz spectrum across eight frequency bands, valued at Rs 96,238 crore at base price, up for auction.

Telecom giants Reliance Jio, Bharti Airtel, and Vodafone Idea (VIL) are competing for spectrum crucial for high-speed 5G mobile services, marking the first such auction in nearly two years.

On the first day, bidding mainly focused on the 900 MHz and 1800 MHz bands, with some activity in the 2100 MHz band across three circles.

“Bids in the 900 and 1800 MHz bands appear strategic for telecom operators replenishing their spectrum,” a source noted.

According to telecom expert Parag Kar, bids on Day 1 totaled Rs 6,306.4 crore for the 1800 MHz band, Rs 4,465 crore for the 900 MHz band, and Rs 360 crore for the 2100 MHz band.

The auction resumes Wednesday with expectations centred on spectrum renewals and strategic acquisitions, reflecting a cautious market sentiment compared to previous auctions.

In the last auction in 2022, which lasted seven days, a record Rs 1.5 lakh crore of 5G spectrum was sold, with Reliance Jio emerging as the top bidder. Industry analysts anticipate a more selective approach from telecom operators this time.

Reliance Jio has deposited the highest earnest money of Rs 3,000 crore, underscoring its readiness to bid aggressively, while Bharti Airtel and Vodafone Idea have submitted Rs 1,050 crore and Rs 300 crore respectively.

The Cellular Operators Association of India expects the auction outcomes to accelerate 5G deployment, enhancing connectivity across the country and fostering economic growth and social development.