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On the sixth day of auctions of telecom spectrum, the battle seemed concentrated in the Delhi circle. The price of the 900-MHz spectrum band here shot up 104 per cent of the original reserve price to Rs 734 crore for a MHz of airwave. According to estimates of the department of telecommunications, the exchequer has already got Rs 56,000 crore, higher than the Rs 50,968 crore it made by selling 20 MHz of third-generation technology spectrum in 2010 to private players. Auctions will resume on Monday.
Just selling 46 MHz of spectrum in the 900-MHz band in Delhi, Mumbai and Kolkata will get the government Rs 23,472 crore, even if sold at the provisional winning price for the sixth day. On the sixth day, the price for Delhi rose seven per cent for the 900-MHz band, while it remained unchanged in Mumbai and Kolkata. There was no excess demand for the band in these circles.
For the 1,800-MHz band, demand was excess only in Assam and Maharashtra. The price jumped 201 per cent of the reserve price in Assam, 38 per cent in Delhi and 51 per cent in Maharashtra.
The government has already crossed the year’s Budget target of Rs 11,343 crore from spectrum auctions. However, demand for spectrum in the Mumbai circle (five MHz of 16 MHz) did not increase on the fifth day, while there was improvement in Delhi (11 MHz of 16 MHz) and Kolkata (12 MHz of 14 MHz).
According to market analysts, while Bharti Airtel and Vodafone are trying to retain their old spectrum in the 900-MHz band, the entry of Reliance Jio and Idea Cellular has pushed up prices.
DAILY REPORT
900 MHz band
* Delhi price up 7.14% to Rs 733.63 crore for a MHz of airwave
* No change in Mumbai and Kolkata
* No excess demand in these three circles
1,800 MHz BAND
* Price up 201.42% in Assam, 38.03% in Delhi and 50.57% in Maharashtra
* Excess demand in Assam and Maharashtra
