Spectrum auction kitty dips to Rs 1.05 lakh crore

The government's telecom spectrum auction kitty today declined to Rs 1.05 lakh crore (Rs 1.05 trillion) with provisional allocation of 88 per cent airwaves at the end of day 15.

The total amount of bids received for spectrum stood at Rs 1.09 lakh crore (Rs 1.09 trillion) yesterday with 89 per cent of the spectrum provisionally allocated to bidders.

While auction witnessed renewed activity in the premium 900 Mhz band today, no activity was seen in 2100 Mhz band, which is used for 3G services.

"At the end of 92nd round, about 88 per cent of the spectrum has been provisionally allocated to bidders. The provisional amount committed by bidders is over Rs 1,05,000 crore," the Department of Telecom (DoT) said. Brisk bidding was seen today with activity requirement set at 100 per cent.

"There is robust bidding going on in 1800 MHz, 900 MHz and 800 MHz bands," it added.

The government had got about Rs 1.06 lakh crore (Rs 1.06 trillion) from the sale of 3G and BWA spectrum in 2010. In the auction held last year, the government netted Rs 62,162 crore (Rs 62.16 trillion)

The auction will continue tomorrow as there is still some spectrum left which is yet to be sold. Sources said there was aggressive bidding in Rajasthan, UP East and West today in 900 Mhz band and the three circles still have excess demand at the end of 92 round.

"For the three circles, price increment will be applicable tomorrow at the start of 93th round," sources said.

Apart from 900 MHz, good bidding took place in 800 MHz band also with activity in 5 circles and price increment is applicable for one circle tomorrow.

One circle in 1800 MHz also witnessed bidding activity. Across all bands, 9-10 telecom circles witnessed activity.

Care Ratings in a report has said meanwhile that "the consumers will have to bear the brunt of tariff hikes which will become inevitable for the operators to realise returns on these huge investments".

The government is not disclosing the names of the successful bidders as yet as a case is pending before the Supreme Court.

The next hearing on the case is on March 26. Incumbents Bharti Airtel and Vodafone are locked with Reliance Jio to protect their spectrum they need to carry voice and data in the world's second-biggest smartphone market. In all, eight bidders are in the fray.

A total of 380.75 MHz of spectrum is on offer in 900 MHz, 1,800 MHz and 800 MHz bands, while 5 MHz is up for bidding in the 2,100 MHz band across 17 out of 22 telecom areas or circles in the country.