The ongoing spectrum auction has entered the 15th round on the third day. The bidding has now hit the 100 percent ‘activity level’, but there is still no demand for the premium 700MHz and 900MHz bands. The bidding activity has touched the 100 percent level according to industry sources. This development is being interpreted by certain sections of the industry as being indicative of the last phase. Sources said there is no demand yet for the 700MHz and 900MHz frequencies while bidding interest continues to be largely around 1800MHz and 2300MHz that can be used by operators to provide 4G services. Also Read - 4G spectrum auction: Reliance Jio comes out as highest bidder, Airtel follows
After conclusion of the second day of the spectrum auction, the bidding had slowed, with total bids advancing to Rs 56,872 crore as against Rs 53,531 crore on the previous day. Yesterday, the bidding had closed with a cumulative 11 rounds. As much as 2,354.55MHz of frequencies have been put up for auction across seven bands valued at Rs 5.63 lakh crore at base price. The premium 700MHz band alone has the potential to fetch bids worth over Rs 4 lakh crore if the entire spectrum in this band is sold at the base price. However, at a reserve or base price of Rs 11,485 crore per MHz, it is considered to be priced very expensive in spite of its inherent advantages in terms of propagation ability and potential savings. Also Read - TRAI floats consultation paper on spectrum auction
Seven telecom companies namely Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio, Aircel, Reliance Communications and Tata Teleservices are in the fray for acquiring 3G and 4G airwaves that are going to be crucial for maintaining competitive edge in the market and offering next generation services in the world’s second-largest telecom market.