Here Is All You Need To Know About Spectrum Auction

The Department of Telecom (DoT) is all set to sell 2251.25 MHz of airwaves today (Monday) across 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz bands. The telecom ministry is likely to get Rs. 3.92 crore from the bidding of these circles.

However, financial firm IIFL Securities predicts that only 24 percent of the spectrum will be sold in the auction. "Telcos will likely bid conservatively for minimum quantities, needed to satisfy the immediate 2-3-quarter capacity requirement, and await prices of regular bands to be cut in subsequent auctions as well as wait for 5G spectrum... We do not see any bids in the 700, 1800, 2100, and 2500 MHz bands," IIFL Securities said in a note.

Notably, in the last auction, only 40 percent of the overall spectrum was sold, and only generated Rs. 65,789 crore revenue as no one bought 700 MHz band due to its high pricing.

Renewal Of Spectrum Bands

The spectrum auction will help all telecom operators to renew the expired or expiring spectrum bands. This will help operators to fulfill the demand of increasing data usage.

It is also expected that Airtel and Vi might go for the 1800 MHz band as the spectrum in the eight circles from July. Whereas, Reliance Jio might go for 800 MHz and 900 MHz bands to offer connectivity and to 5G roll out.

Additionally, the telecom operator is expected to purchase a 700 MHz band. Airtel is likely to buy 40 MHz bands in all circles in 2300 MHz,900 MHz, and 2100 MHz.

Furthermore, Vi (Vodafone-Idea) might go for 900 Mhz, 1,800MHz bands in Andhra Pradesh and Uttar Pradesh. Apart from that, BSNL and MTNL have already surrendered 900 MHz and 1800 MHz bands. The DoT has also clarified the same and said that the spectrum surrendered by both PSUs will also be available in the auction.