Telecom Spectrum Auction Fetch Rs 1.09 lakh crore Wednesday March 25,2015

 

The country’s biggest telecom spectrum auction ended on Wednesday March 25,2015 with the government garnering Rs 1.09 lakh crore amidst fears that mobile tariff could go up due to the high price paid for radio waves by telecom firms.

A total of 380.75 MHz of spectrum was put on sale in the premium 900 MHz band, 1,800 MHz and 800 MHz, while 5 MHz was up for bidding in the 2,100 MHz band, used for 3G mobile services, across 17 out of 22 telecom

Eight firms have participated in the bidding. While Idea, Airtel, Vodafone and Reliance Communications participated in the auction mainly to defend their existing spectrum holding, Reliance Jio, Tata Teleservices, Telewings (Uninor) and Aircel took part to buy additional spectrum.



After 115 rounds of aggressive bidding spreading over 19 days, the government to garner Rs 1,09,874 crore from operators, which is highest from the previous held auction in 2010 where the government earned Rs 1.06 lakh crore, Telecom Minister Ravi Shankar Prasad said.

Idea Cellular Ltd, India's third-biggest mobile operator by market share, spent Rs 30,300 crore or $4.84 billion to buy mobile airwaves in the country's spectrum auctions, Telecom Minister Ravi Shankar Prasad said today.

That was the single biggest amount spent. Together with market leaders Bharti Airtel and Vodafone Group Plc's India unit, the top three players paid Rs 85,575 crore, or about 78 per cent of the total airwaves sold

At the base price, the value of spectrum in the auction was worth about Rs 82,395 crore. However, the fierce bidding is likely to lead to rise in mobile call, SMS and data charges as operators may pass on the cost of spectrum to consumers.

The names of the winners will be announced only after the Supreme Court of India (SCI)gives its nod due to pending petitions.

The SC will hear the case on March 26,2015

Sale of airwaves in four bands got bids worth Rs 1,09,874 crore even as 11% spectrum went unsold.