The Department of Telecom is anticipated to situation the notice for upcoming spectrum auction this week that will have timelines and guidelines to bid for airwaves.
The Union Cabinet authorized a proposal for the auction of 2,251.25 Megahertz (MHz) of spectrum worth Rs 3.92 lakh crore at the base cost on December 17, 2020.
The DoT was anticipated to situation the Notice Inviting Application (NIA) for the auction in December but due to an emergency engagement of a top rated authority it got delayed.
“The NIA is almost ready. It should be out this week,” a DoT official, who did not want to be named, told PTI.
The Digital Communications Commission, the apex choice generating body of the DoT, in May final year authorized the spectrum auction strategy worth Rs 5.22 lakh crore which integrated radiowaves for 5G services as effectively. A component of the 300 MHz of spectrum identified by the DoT for 5G services is becoming utilized by the Navy, and the Department of Space has also produced claims on a considerable portion of these radio waves.
The sector has also been demanding the government to reduce the base cost of 5G spectrum as each and every operator will require to shell out about Rs 50,000 crore for the needed quantum of radio waves for the subsequent generation services.
In addition to the bid quantity, productive bidders will also have to spend 3 per cent of the Adjusted Gross Revenue (AGR), excluding wireline services, as spectrum usage charges for the spectrum won by means of this auction.
Successful bidders could spend complete bid quantity in one particular go (upfront). They can also workout an solution to spend a specific quantity (25 per cent for spectrum won in 700 MHz, 800 MHz, 900 MHz bands or 50 per cent for spectrum won in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront and the remaining quantity in a maximum of up to 16 equated annual instalments soon after a moratorium of two years.
The upcoming spectrum auction to be held in March could not see aggressive response from the sector and bids could be in the variety of Rs 30,000 crore to Rs 50,000 crore for the radiowaves valued at about Rs 3.92 lakh crore, according to analysts.
Market authorities think that telecom operators are most likely to concentrate on renewal of spectrum and Vodafone Idea could not participate in the auction for renewal of their spectrum in some circles.
According to Icra, it does not foresee any important participation in the 700 MHz band and pegged the bids to be in the variety of Rs 55,000-60,000 crore.
JM Financials, on the other hand, expects bids to be in the variety of Rs 30,000 crore only.
Bharti Airtel has 12.4 MHz of spectrum in 900 MHz band and 47 MHz in 1800 MHz band, and Reliance Communications’ 44 MHz of spectrum in 800 MHz band, becoming utilized by Reliance Jio, is coming up for renewal.
Vodafone Idea requirements to renew 6.2 MHz of spectrum in 900 MHz band and 38.2 MHz in 1800 MHz band.
According to Credit Suisse, renewal of these spectrum frequencies will price about Rs 15,000 crore to Bharti Airtel and Rs 11,500 crore to Reliance Jio.