In the latest auction, more than 2,250 MHz telecom spectrum has been offered, these spectrum are of 7 bands and their total value at the reserve price is about 4 lakh crores.
- Reliance Jio, Bharti Airtel and Vodafone Idea bid for spectrum
- Spectrum auction started on Monday after 5 years
Bid of Rs 77,146 crore was received on Monday on the first day of the spectrum auction. The bid has come from Reliance Jio, Bharti Airtel and Vodafone Idea. The spectrum is being auctioned after 5 years.
More than 2,250 MHz telecom spectrum has been offered in the latest auction which started on Monday. These spectrum are of 7 bands and their total value at reserve or start price is around Rs 4 lakh crore. Reserve price means that a bid cannot be made below this price.
No bids were found in the 700 and 2500 MHz bands
Telecom Minister Ravi Shankar Prasad said that the bid for spectrum worth Rs 77,146 crore was received on the first day. But no bids were found in the 700 and 2500 MHz bands. The auction will continue on Tuesday.
There was no bid in the 700 MHz band even at the 2016 auction.
On Monday, bids were received for the spectrum of 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. Of the spectrum that the government has offered, about one third of the spectrum is in the 700 MHz band. No bid was received for the 700 MHz band spectrum even in the 2016 auction.
Companies did not bid in the 700 MHz band to avoid over-spending
According to analysts, the bid for the 700 MHz band spectrum was not received because the telecom companies did not want to spread the business in the new spectrum band. This is because it would have greatly increased their expenditure on new equipment. Another reason was that the spectrum of the other bands was being available at a slightly lower price.
This is the sixth round auction
This is the sixth round of spectrum auction. In this, 2,251.25 MHz spectrum valued at Rs 3.92 lakh crore has been put up for auction. In this, spectrum is being auctioned in 7 frequency bands 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz for mobile service.
Current auction does not include 5G spectrum
The current auction of spectrum does not include frequencies of 3300–3600 MHz. This spectrum is to be used for 5G service. The auction for this will be held later.
There will be many options to pay
Successful bidders will have the option to pay the entire bid amount at one go or pay 25% for the spectrum won in a fixed amount ie 700 MHz, 800 MHz, 900 MHz. Apart from this, bidders will have to pay a one-time 50 percent for the spectrum acquired in 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz. The remaining amount can be paid at a maximum of 16 EMIs after 2 years of withholding.
20 years of validity of spectrum
The validity of the spectrum acquired in this auction will be 20 years. Private sector telecom companies Reliance Jio, Bharti Airtel and Vodafone Idea have deposited an initial Ernest Money Deposit (EMD) of Rs 13,475 crore for the spectrum auction. In this, Jio has deposited Rs 10,000 crore, Airtel has deposited Rs 3,000 crore and Vodafone Idea has deposited EMD of Rs 475 crore.
What is spectrum?
The spectrum is a shortened form of the electromagnetic spectrum. This is the radiation energy that surrounds the Earth. All operate from our TV remote to microwave oven. The main source of this electromagnetic radiation (IMR) is the Sun. This energy is also combined with radioactive elements buried beneath the Earth along with stars and galaxies.
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