The Department of Telecom is predicted to issue the notice for upcoming spectrum auction this week that may have timelines and guidelines to bid for airwaves.
The Union Cabinet accepted a proposal for the auction of two,251.25 Megahertz (MHz) of spectrum price Rs 3.92 lakh crore on the base value on December 17, 2020.
The DoT was anticipated to issue the Notice Inviting Application (NIA) for the auction in December however due to an emergency engagement of a high authority it received delayed.
“The NIA is almost ready. It should be out this week,” a DoT official, who didn’t want to be named, informed PTI.
The Digital Communications Commission, the apex determination making physique of the DoT, in May final yr accepted the spectrum auction plan price Rs 5.
22 lakh crore which included radiowaves for 5G companies as nicely. Part of the 300 MHz of spectrum recognized by the DoT for 5G companies is being utilized by the Navy, and the Department of Space has additionally made claims on a good portion of those radio waves.
The trade has additionally been demanding the federal government to decrease the bottom value of 5G spectrum as every operator will want to shell out round Rs 50,000 crore for the required quantum of radio waves for the following technology companies.
In addition to the bid quantity, profitable bidders may also have to pay three per cent of the Adjusted Gross Revenue (AGR), excluding wireline companies, as spectrum utilization costs for the spectrum gained via this auction.
Successful bidders might pay complete bid quantity in a single go (upfront). They may also train an choice to pay a certain quantity (25 per cent for spectrum gained in 700 MHz, 800 MHz, 900 MHz bands or 50 per cent for spectrum gained in 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands) upfront and the remaining quantity in a most of up to 16 equated annual instalments after a moratorium of two years.
The upcoming spectrum auction to be held in March might not see aggressive response from the trade and bids could also be within the vary of Rs 30,000 crore to Rs 50,000 crore for the radiowaves valued at round Rs 3.92 lakh crore, in accordance to analysts.
Market consultants imagine that telecom operators are likely to concentrate on renewal of spectrum and Vodafone Idea might not take part within the auction for renewal of their spectrum in some circles.
According to Icra, it doesn’t foresee any main participation within the 700 MHz band and pegged the bids to be within the vary of Rs 55,000-60,000 crore.
JM Financials, alternatively, expects bids to be within the vary of Rs 30,000 crore solely.
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, being utilized by Reliance Jio, is developing for renewal.
Vodafone Idea wants 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 those spectrum frequencies will value round Rs 15,000 crore to Bharti Airtel and Rs 11,500 crore to Reliance Jio.