4G spectrum auction ends, government cleans up Rs 77,814 crore, Telecom News, ET Telecom

NEW DELHI: Ministry of Telecommunications (DoT) recovered Rs 77,814.80 crore from 4G spectrum auction it started on Monday and ended on Tuesday, the second day itself, making it one of the shortest sales in recent times. The total amount of spectrum for which the right of use has been acquired in these bands is 855.60 MHz.

The department said additional offers for Rs 668.20 crore were made on Tuesday. He added that tenders had been held for spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands. Participants did not bid in the 700 MHz and 2500 MHz bands.

The total amount of 2308.80 MHz spectrum has been auctioned, including spectrum that expires until December 2021. Of that amount, bids have been received for 855.60 MHz of spectrum.

Excluding spectrum in the 700 MHz and 2500 MHz bands, this represents approximately 60% of the spectrum auctioned.

“In the 2016 spectrum auction, where there were 7 bidders, the spectrum sold was 41% in quantity and 12% in value of the total spectrum auctioned. The corresponding figures in the 2021 spectrum auction are 37% and 19% respectively, with 3 participants, ”according to an official statement.
The Ministry has stated that the spectrum usage fees (SUC) for the spectrum acquired in this auction will be payable at the rate of 3% of the licensee’s adjusted gross revenues (AGR), excluding wireline revenues. .

“The auction is over and these provisional results are subject to government review and approval,” the statement said.

With the roll-out of the additional spectrum acquired from this auction in the networks of telecommunications service providers, the quality of service and customer experience for telecommunications consumers across the country is expected to improve, the government said.

“While the value of the total spectrum sold represents only 19% of the total value of the spectrum offered, after the auctions, the debt levels of industry would increase further to around Rs. 5 lakh crore as of March 31, 2022 and despite improving operating parameters, debt protection parameters will continue to remain low, ”said Ankit Jain, deputy vice president of ICRA Ltd. on telecommunications. spectrum auction.

Jain said that while the bands below GHz will be crucial for the deployment of 5G technology in the future as well as for improving indoor coverage, the appetite for the 2300 MHz band stems from the increasing use of the top. mobile throughput and therefore the need to improve network capacity. “While there was no interest yet in the 700 MHz band which remained unsold as well as the 2500 MHz band, the 2100 MHz band saw muted participation. of data remained the theme of these auctions. ”