India (Commonwealth) _ The applications for the forthcoming spectrum auction have been submitted by Reliance Jio, Bharti Airtel, and Vodafone Idea, the three main private telecom providers in India.
The auction is set to start on June 6 and will feature 5G spectrum worth Rs. 96,317.65 crore. Only these three telcos have submitted applications to the Department of Telecommunications (DoT) before the deadline, according to official sources.
Notably, this time around, no new businesses have applied. An organization from the Adani group showed up as a surprise bidder in the 2022 auction. Airwaves in a number of bands, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, and 3300 MHz, will be up for sale.
According to Jefferies estimates, airwaves worth around Rs. 4,200 crore and Rs. 1,950 crore, respectively, need to be renewed by Airtel and Vodafone Idea. Reliance Jio, on the other hand, has no upcoming spectrum renewals this year.
Industry observers predict a muted reaction to the spectrum sale because India’s leading telecom companies already have an adequate amount of 5G airwaves. In order to renew airwaves in particular locations, Bharti Airtel and Vodafone Idea are probably going to participate in selective bidding.
In J&K, Odisha, Bihar, UP (East), West Bengal, and Assam, Airtel needs to be renewed; in West Bengal and UP West, Vodafone Idea needs to be renewed. The DoT permits purchased spectrum to be turned in after ten years at least. Furthermore, bidders are exempt from providing performance-based on finance.
Spectrum use charges (SUC) will not apply to spectrum obtained in the auction, in accordance with telecom reforms, starting in September 2021. On May 10, the DoT will release the applicants’ ownership data. May 17 is the cutoff date for application withdrawals, and May 20 is the announcement of the final bidder list.
Upon receiving the DoT demand notification, successful bidders have 10 calendar days to deposit the money. After receiving payment, the department will send out a frequency assignment letter within 30 calendar days.
The Adani Group Company was a surprise bidder in the last auction in 2022, although the auction’s new name has not been announced yet. According to an official source, Reliance Jio, Bharti Airtel, and Vodafone Idea have sent in applications for the spectrum auction.
Eight spectrum bands for mobile phone services will be up for sale by the government, with a starting bid of around Rs 96,317 crore. The auction includes all of the spectrum that is accessible in the following bands: 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz.
At base pricing, the total frequencies up for grabs are worth at Rs 96,317 crore.
Successful bidders will be able to pay in 20 equal yearly installments during the spectrum’s 20-year assignment. The Department of Technology has offered the opportunity to turn in the spectrum purchased in the next auction following a minimum of ten years. On May 10, the DoT will release the applicants’ ownership data. May 17 is the deadline for application withdrawals, and May 20 is when the final bidder list is expected to be announced.
The country’s ability to use satellite broadband services depends on the spectrum being allotted for this purpose. In order to prevent interference, satellite spectrum is administratively allotted in accordance with international ITU requirements. Nonetheless, Voda Idea and Jio have requested that satellite spectrum be put up for auction.
According to Vodafone Idea, the process of allocating spectrum for space-based communication is comparable to that of allocating spectrum through auction for IMT (terrestrial communication) uses.
Dependency Jio goes on to say that as space and terrestrial communication are becoming closer due to the quick development of technology, satellite spectrum services serve a more versatile function and may be utilized for both traditional and space-based communications. Thus, it makes sense to put satellite spectrum up for sale.
Since spectrum is a common resource and different operators may operate at the same frequency without experiencing interference by physically isolating their equipment, Airtel has advocated for the administrative allotment of spectrum. Many businesses in the satellite industry support Airtel’s position, including Hughes, USIBC, Elon Musk’s SpaceX, and the Indian company Dhruva Space, which provides services for satellite launches.
