 "Spectrum auction: Govt revenues dip to Rs 1.05 lakh cr on Day 15")
The government’s assured revenues from the auction of telecom spectrum dropped to Rs 1,05,000 crore at the end of the 15th day of bidding from Rs 1,09,000 crore on the 14th day.
The auction will continue on Saturday, according to a statement by the Department of Telecommunications (DoT).
After 92 rounds of bidding, prices have increased 16 per cent in the 1,800-MHz band compared to the reserve price, while there was an increase of 81 per cent in 900-MHz band, 82 per cent in the 800-MHz band and five per cent in the 2,100-MHz band.
The government is auctioning for commercial use 380.75 MHz of spectrum in the 800-MHz, 900-MHz and 1,800-MHz bands, and five MHz in the 2,100-MHz band, across 17 of the 22 circles.
Initially, the DoT had estimated earnings of Rs 80,000 crore-Rs 1 lakh crore from the sale of telecom spectrum.
“Brisk bidding was seen on 15th day of bidding, with activity requirement set at 100 per cent. There was robust bidding in 1,800-MHz, 900-MHz and 800-MHz bands. At the end of the 92nd round, 88 per cent of the spectrum has been provisionally allocated to bidders.
The provisional amount committed by bidders Rs 1,05,000 crore. Most service areas are going at a premium over the reserve price,” DoT said in a statement.
The auction will continue on Saturday, according to a statement by the Department of Telecommunications (DoT).
After 92 rounds of bidding, prices have increased 16 per cent in the 1,800-MHz band compared to the reserve price, while there was an increase of 81 per cent in 900-MHz band, 82 per cent in the 800-MHz band and five per cent in the 2,100-MHz band.
The government is auctioning for commercial use 380.75 MHz of spectrum in the 800-MHz, 900-MHz and 1,800-MHz bands, and five MHz in the 2,100-MHz band, across 17 of the 22 circles.
Initially, the DoT had estimated earnings of Rs 80,000 crore-Rs 1 lakh crore from the sale of telecom spectrum.
“Brisk bidding was seen on 15th day of bidding, with activity requirement set at 100 per cent. There was robust bidding in 1,800-MHz, 900-MHz and 800-MHz bands. At the end of the 92nd round, 88 per cent of the spectrum has been provisionally allocated to bidders.
The provisional amount committed by bidders Rs 1,05,000 crore. Most service areas are going at a premium over the reserve price,” DoT said in a statement.
However, final results of the spectrum auction will not be published as the Supreme Court has barred the DoT to do so without its permission. A hearing in the apex court in this regard is scheduled for March 26.
Major telecom operators are bidding fiercely to regain their existing spectrum holding as 29 licences of different operators are coming up for renewal in 2015-16. The licences of Idea Cellular (nine circles), Bharti Airtel (six circles) and Vodafone and Reliance Telecom (seven circles each) are due for renewal in 2015-16, which has made ongoing spectrum auction crucial for them. Overall, 29 licences in 18 service areas are due for renewal in 2015-16. These licences hold 184 MHz of spectrum in the 900 MHz band and 34.2 MHz in the 1,800 MHz band. Seven circles -- Bihar, HP, UP west, Gujarat, Odisha and Kerala -- which are must wins for some telcos, has seen prices going up by over 100%.
Morgan Stanley had, in a note, predicted the government's earning at around Rs 1,18,500 crore. "Operatos would need a hike in tariffs of 5 paise or 15% to neutralise its impact on profits. The spectrum is valid for 20 years and hence, there is a lot more certainty from a business continuity perspective. Data growth is happening at a robust pace, which should aid overall revenue growth for the operators," it noted.