India Telecom Spectrum Auction – 8 Telco Companies are in Race
4th March, Big day for Telco companies including Reliance Jio, Airtel, Aircel, RComm, Uninor, Vodafone, Idea and Tata Teleservices. Out of 8, Six companies have submitted papers while Tata and Aircel still need to submit Applications. Shyam Sistema and Videocon opts out of race owing to high cost.
Participation of Tata and Reliance Jio, will make the bidding more interesting and aggressive. Most of the spectrum being put up for the auction is presently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. Their licences are set to expire in 2015-16.It’s a mandate to participate in Auction if companies are willing to continue with the current services offered.
The government expects to collect over Rs 80,000 crore from the sale of spectrum for providing 2G and 3G services, going by the reserved price.It has approved the minimum or auction start price for the 2,100 Mega-Hertz band or 3G spectrum, which will collect at least Rs 17,555 crore. The reserve price for auction of 2G spectrum in 800 MHz, 900 Mhz and 1800 MHz bands will fetch the government Rs 64,840 crore, The government plans to sell 380.75 MHz of spectrum in the three bands – the premium 900 MHz band, 1800 MHz and 800 MHz, besides 5 Mhz in the 2100 Mhz band across 17 out of 22 telecom areas.
Government has fixed reserve price of Rs 3,646 crore for pan-India per MHz in the 800 MHz band; Rs 3,980 crore for 900 MHz band (pan-India excluding Delhi, Mumbai, Kolkata, and J&K); Rs 2,191 crore pan-India , For the 2100 Mhz band, which is used for 3G services, the price of spectrum per Mhz has been fixed at Rs 3,705 crore. which means, Government will reach the set target of 4.1 Fiscal deficit.