On the first day of India’s spectrum auction, telecom operators submitted bids totaling ₹11,000 crore, according to news agency PTI. This auction is for radio waves used to provide mobile service, and the government has put a total of 10,500 MHz of spectrum up for bid, valued at ₹96,238 crore. The auction will continue on Wednesday.
Reliance Jio placed the highest EMD (earnest money deposit) at ₹3,000 crore compared to Bharti Airtel’s ₹1,050 crore and Vodafone Idea’s ₹300 crore. This gives Jio the potential to bid for the most spectrum among the three bidders.
EMD essentially works as a security deposit in an auction. The higher your EMD, the greater your bidding limit. So, Jio’s strategy indicates they might be aiming for a larger chunk of the spectrum being auctioned.
That’s interesting information about the auction! Here’s what we can understand from this additional passage:
- Focus on Specific Bands: Bharti Airtel and Reliance Jio seem primarily interested in the 900 MHz and 1800 MHz bands, with a total value of ₹37,372 crore (₹15,619.6 crore + ₹21,752.4 crore). These bands are likely crucial for expanding their network coverage, especially in rural areas.
- Auction Terms: The winning companies will get to use the spectrum for 20 years with a minimum lock-in period of 10 years. They can pay the dues in easy installments over 20 years to manage the financial burden. Additionally, they are exempted from spectrum usage charges and bank guarantees, making the auction more attractive for the bidders.
However, even with this information, we still can’t determine how much each company bid on specific bands or the total amount each bid overall.