Spectrum auction ends after 10 days; Govt gets Rs 61,162 crore bids
14 Feb 2014 5:47 AM IST
It has ensured a minimum revenue of Rs 18,296.36 crore to the government in the current financial year ending 31 March.
‘I am very happy to report that auction is over. The total revenue that will come to government is Rs 61,162.22 crore. To that extent particular auction has been extremely successful,’ Sibal told reporters.
The government had put on the block about 385 MHz of radiowaves in the 1800 MHz band, and 46 MHz in the 900 MHz band. About 78 Mhz remained unsold in 1800 Mhz. Telecom Secretary MF Farooqui said that bids worth Rs 37,572.60 crore have come in for radiowaves in 900 Mhz band, and Rs 23,589.62 crore for 1800 Mhz band.
Companies have the option to pay 33 per cent upfront for 1800 Mhz band, and 25 per cent in case of 900 Mhz band. ‘Government will get at least Rs 18,296.36 crore from upfront payment this fiscal,’ Farooqui said.
The value of the total spectrum on sale was Rs 47,933.40 crore at reserve price. The total bid value of the spectrum in the two bands, crossed over 90 per cent of the money that the government had received in the 3G spectrum auction in 2010, which fetched Rs 67,718.95 crore, although the quantum of radiowaves put up for sale in the latest round was higher.
On whether the strong bidding will impact mobile tariffs, Sibal said: ‘But this successful auction will really be successful if we are able to provide efficient service to consumers. ‘Ultimate objective if any auction which has to provide service is that service must be provided efficiently and at a relatively affordable price. We hope the tariffs will remain reasonable in the years to come.’
‘I am very happy to report that auction is over. The total revenue that will come to government is Rs 61,162.22 crore. To that extent particular auction has been extremely successful,’ Sibal told reporters.
The government had put on the block about 385 MHz of radiowaves in the 1800 MHz band, and 46 MHz in the 900 MHz band. About 78 Mhz remained unsold in 1800 Mhz. Telecom Secretary MF Farooqui said that bids worth Rs 37,572.60 crore have come in for radiowaves in 900 Mhz band, and Rs 23,589.62 crore for 1800 Mhz band.
Companies have the option to pay 33 per cent upfront for 1800 Mhz band, and 25 per cent in case of 900 Mhz band. ‘Government will get at least Rs 18,296.36 crore from upfront payment this fiscal,’ Farooqui said.
The value of the total spectrum on sale was Rs 47,933.40 crore at reserve price. The total bid value of the spectrum in the two bands, crossed over 90 per cent of the money that the government had received in the 3G spectrum auction in 2010, which fetched Rs 67,718.95 crore, although the quantum of radiowaves put up for sale in the latest round was higher.
On whether the strong bidding will impact mobile tariffs, Sibal said: ‘But this successful auction will really be successful if we are able to provide efficient service to consumers. ‘Ultimate objective if any auction which has to provide service is that service must be provided efficiently and at a relatively affordable price. We hope the tariffs will remain reasonable in the years to come.’
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