5G spectrum auction: Jio, Airtel, Vi, Adani Data Networks
On Tuesday, the eagerly anticipated 5G spectrum auction will take place, and the Center anticipates making between Rs 1-1.1 lakh crore from it. In this auction, a spectrum with a 72 gigahertz (GHz) bandwidth and approximately 72,000 megahertz (MHz) spread across nine bands with a 20-year validity period would be sold for Rs 4.3 lakh.
On June 15, the Cabinet under Prime Minister Narendra Modi approved the 5G spectrum auction and permitted non-telecom service providers to bid for spectrum to build captive 5G networks in India.
5G spectrum auction – Best things to know
1. An auction will be held for 72 gigahertz (GHz) of spectrum, or 72,000 megahertz (MHz), worth Rs. 4.3 lakh crore. On July 26, the auction will get started.
2. Radio waves in the low-frequency (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, and 2,300 MHz), mid-frequency (3,300 MHz), and high-frequency bands will be put up for auction (26 GHz).
3. The length of the auction will depend on the actual demand for radio waves as well as the tactics used by each bidder.
4. These bands will aid telcos in improving network coverage, and it will be crucial to balance their investments with the potential advantages of each band.
5. Operators will bid for 5G networks, reducing SUC (spectrum usage charges) rates and enhancing existing spectrum bands, leading to a demand primarily for the 3.3 GHz/26 GHz spectrum bands, according to brokerage Jefferies.
6. According to a press release from the DoT, the first phase of the rollout of 5G services will include 13 significant cities. Mumbai, Bengaluru, Delhi, Gurugram, Kolkata, Lucknow, Pune, Chennai, Gandhinagar, Hyderabad, Jamnagar, Ahmedabad, and Chandigarh are among these cities.
7. Adani Data Networks, Reliance Jio Infocomm, Vodafone Idea, and Bharti Airtel are the main participants in this auction.
8. In comparison to Adani Group, Reliance Jio made an earnest money deposit (EMD) worth Rs 14,000 crore. While Vodafone Idea contributed Rs 2,200 crore, Bharti Airtel paid an EMD of Rs 5,500 crore.
9. EMD amounts reveal a player’s preference, plan, and strategy for acquiring spectrum in an auction, as well as their eligibility points. Through eligibility points, telcos target a particular quantity of spectrum in a specified circle.