5 rounds of bidding had been concluded, with many of the demand for 2 particular spectrum bands 900MHz and 1800MHz. Demand for spectrum is highest in Bihar and West Bengal.
Airwaves value ₹96,000 crore had been placed on public sale on Tuesday. Which means telcos have solely positioned bids on solely 11.7 per cent of the spectrum on provide (by worth). The value of the spectrum even after 5 rounds of bidding is on the reserved value. Nevertheless, for circles, Bihar and West Bengal costs exceeded the reserve value by a small margin.
Public sale to proceed
The public sale will proceed on Wednesday. Analysts expect telcos to shell out no more than ₹ 15,000 core for spectrum this time.
Whereas the Division of Telecommunications is hoping to promote 17 per cent of spectrum on provide throughout these auctions, on the finish of day one, solely 94.4 MHz spectrum of the overall 10,532 spectrum on provide have been offered to operators.
Demand within the 900MHz band is probably going coming from Bharti Airtel and Vodafone Thought who’re each bidding to ramp up capability. Each operators have considerably decrease quantities of spectrum in sub-GHz bands compared to Reliance Jio – which impacts the protection of their 4G and 5G networks. After its profitable follow-on public provide, Vodafone Thought has particular capex targets to enhance protection of its 4G community doubtless motivating its bidding technique.
Market consultants additionally consider that Bharti Airtel might emerge the most important spender within the 2024 spectrum public sale with an outlay of ₹10,400 crore because the telecom main goals to agency up its sub-1GHz holdings and lift its share of 1800-MHz and 2300-MHz bands. It’s also dealing with renewals for 42 MHz of spectrum in six circles of Assam, Bihar, J&Okay, Orissa, UP East, and West Bengal.
1800 MHz band
In line with the skilled, Reliance Jio’s bids are doubtless reserved for the 1800MHz band, to plug its gaps there. The 1800MHz band can be doubtless inviting bids from Bharti Airtel and Vodafone Thought. With the restricted proliferation of 5G companies, the procurement of spectrum is essentially reserved to enhancing protection, an skilled mentioned.
Whereas spectrum bands like 26GHz, 2100MHz, and 3300MHz are for 5G companies, thus far operators haven’t present a lot curiosity, One slot of 5MHz of spectrum within the 2100MHz band has been picked up within the UP West circle.
The earlier spectrum public sale in 2022 acquired bids amounting to Rs 1,50,173 crore, with a complete of 71 per cent of the obtainable spectrum was offered as operators had been trying to launch 5G companies. .
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