Govt gets bids worth around Rs 60,969 cr on Day 3
Interest continues to be largely around 1800 MHz and 2300 MHz that can be used by operators to provide 4G services
Muted response has been attributed to high reserve price as debt-ridden telcos are in no mood to pile up the burden further
There is no activity yet in the premium 700 Mhz band, according to industry sources
Jio is the only company in this auction which is eligible to bid for pan-India spectrum in 700 Mhz band
The government has decided to allot the right to the spectrum won through auction for 20 years
Vodafone India has submitted EMD of Rs 2,740 crore, followed by Idea Cellular's Rs 2,000 crore and Bharti Airtel's Rs 1,980 crore
Firm mops up 44,506 pts on basis of EMD, can bid in any band in any service area; Vodafone a distant second with 18,821 pts
The seven operators include Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio, RCom, Aircel and Tata Teleservices
Telecom Minister Manoj Sinha feels that service providers not buying airwaves will not be able to take on competition
Telecom operators operators have suggested there should be a gap of 3 working days between the mock auction and the actual start of sale of airwaves
Allegations have flown thick and fast between cellular operators and RJio
The auctions would push up industry debt to Rs 4,70,000 crore from Rs 4,10,000 crore currently, the report noted
The Street does not expect meaningful participation in 700 MHz spectrum band due to high reserve price and relatively nascent 4G ecosystem
For spectrum below 1 GHz, bidders will have to pay 25% of the amount upfront; spectrum to be assigned in 30 days
Cabinet has approved base price in seven bands, sector regulator to give its views on spectrum usage charge soon
Govt expects to raise at least Rs 64,000 crore from the auction
Govt will auction 2,300 MHz of spectrum, from which it expects to garner Rs 5.44 lakh cr
But airwave sales may not resolve all the telecom woes
High reserve price, adequate availability of spectrum and huge debt among the key reasons for the lack of interest