Shares of four telecom companies rose by 0.29% to 1.43% at 11:55 IST on BSE after auctions of telecom spectrum concluded on Thursday, 13 February 2014, after 68 rounds of bidding.
Reliance Communications (up 1.43%), Idea Cellular (up 1.37%), Bharti Airtel (up 1.16%) and Tata Teleservices (Maharashtra) (up 0.29%), edged higher.
The S&P BSE Sensex was up 75.21 points, or 0.37% at 20,268.56.
The auction of spectrum in the 1800 MHz and 900 MHz band that began on 3 February 2014, ended on Thursday, 13 February 2014. Bids were received in all 22 service areas in 1800 MHz band and in all 3 service areas in 900 MHz band. Thus, bidding took place in all the service areas in both bands, Ministry of Communications & Information Technology said in a statement.
Mukesh Ambani-controlled Reliance Jio Infocomm (RJIL) won 1800 Mhz band airwaves in 14 zones and dropped out of the race for the more expensive airwaves in the 900 MHz band. Bharti Airtel and Idea Cellular won 900 Mhz band spectrum in Delhi. Bharti also won 900 MHz band spectrum in Mumbai and Kolkata. Reliance communications won 1800 MHz band spectrum in Mumbai zone.
Media reports suggested that the incumbents defending their renewal spectrum (Bharti in Delhi/Kolkata and Vodafone in Delhi/Mumbai/Kolkata) were able to win back at least 5 MHz in the 900 MHz band, implying no potential disruption to their networks from the proposed re-farming.
Mukesh Ambani-controlled Reliance Jio Infocomm (RJIL) announced that it has successfully acquired the right to use spectrum in 14 key circles across India in the 1800 megahertz (MHz) band in the spectrum auction conducted. RJIL plans to use this spectrum, ranging from 2x5 MHz to 2x7 MHz in each of these 14 circles, in conjunction with its pan India 2300 MHz spectrum to address the expected surge in demand for digital services as well as to enhance in-building coverage. RJIL plans to provide seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem.
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: "With this acquisition, Reliance Jio will be the holder of the largest quantum of liberalized spectrum and with the longest residual spectrum life. Reliance Jio's seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem, aims to provide unparalleled high quality access to innovative and empowering digital content, applications and services."
RJIL dropped out of the race for the more expensive airwaves in the 900 MHz band which were reportedly won by Bharti Airtel, Idea Cellular and Vodafone India.
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