Telcos may bid for 20-30% of six 4G bands in spectrum auctions: Report

In the upcoming auctioning of the 4G spectrum, telecom companies are likely to bid for a total of only 20-30 per cent of the six 4G bands which are worth around Rs 2 lakh crore at base price.

According to a report by The Economic Times, Reliance Jio is likely to acquire some of the 800 Megahertz (MHz) band spectrum of Reliance Communications, while Bharti Airtel may buy additional spectrum in the 800 MHz and 900 MHz bands. Analysts expect Vodafone Idea to not renew most of its expiring airwaves.

The telecom companies are likely to give the 700 MHz band a miss, given its high price, say experts. The band costs 38 per cent higher than the 800 MHz band on average and 56 per cent higher in three metro circles. Bidders opting for the 700 MHz band will have to shell out at least Rs 32,905 crore on a pan-India basis for the frequencies in the premium spectrum band.

The Department of Telecom (DoT) has fixed January 12 for the pre-bid conference and January 28 as the last date for seeking clarification to the notice.

Telecom operators will need to submit their application by February 5 for participation in the auction.

The final list of the bidders will be declared on February 24 and the auction process is scheduled to begin on March 1.

The Union Cabinet had approved the proposal to auction 2,251.25 MHz of spectrum worth Rs 3.92 lakh crore on December 17, 2020, in seven frequency bands - 700 Mhz, 800 Mhz, 900 Mhz, 1800 MHz, 2100 Mhz, 2300 Mhz and 2500 Mhz - at the base price recommended by the Telecom Regulatory Authority of India (TRAI).

The government has kept the frequency bands of 3,300-3,600 MHz that the industry identifies for rolling out 5G services out of the upcoming auction. These frequencies were part of TRAI recommendations for the auction.