The highly anticipated 5G spectrum auction in India commenced on Tuesday, with the Indian government offering airwaves valued at over Rs 96,000 crore. The Department of Telecommunications (DoT) is auctioning frequencies across various bands, including 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz. However, the premium 700 MHz band is notably absent due to supply shortages.
Key Auction Details:
- Spectrum Validity: The acquired spectrum will be valid for 20 years, with provisions for sharing, trading, leasing, or surrendering after 10 years.
- Payment Options: Telecom companies can pay the full amount upfront or in EMIs with an interest rate of 8.65%, higher than the 7.2% rate in the 2022 auction. Options include part payments with moratoriums or payments in 20 annual installments, starting 10 days after the auction. Pre-payments can be made without penalties.
- Excluded Bands: The 600 MHz and 700 MHz bands are excluded from this auction.
- Reserve Prices: Reserve prices have increased by 12% for the 3,300 MHz band and 8.9% for the 26 GHz band. Prices in bands or circles with previous demand have risen by 11-14%.
Earnest Money Deposits:
- Reliance Jio: Rs 3,000 crore
- Bharti Airtel: Rs 1,050 crore
- Vodafone Idea: Rs 300 crore
These deposits allow telecom companies to bid up to three to four times the deposited amount. Eligibility points allocated are 21,363 for Reliance Jio, 7,613 for Airtel, and 2,200 for Vodafone Idea.
New Entrants and Eligibility:
Companies with expiring licenses and spectrum in 2024, without previously acquired spectrum in specific circles or bands, will be treated as “new entrants”. The DoT has set the net worth eligibility for bidders at Rs 100 crore per LSA, with lower requirements for Jammu & Kashmir and Northeast circles at Rs 50 crore.
Renewal Requirements:
- Airtel: Needs to renew airwaves in J&K, Odisha, Bihar, UP (East), West Bengal, and Assam.
- Vodafone Idea: Needs to renew spectrum in West Bengal and UP West circles.
Initially scheduled for May 20, the auction date was postponed twice following the invitation issued on March 8.
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