₹96,317 crore worth of 5G spectrum to go up for auction on June 6th

7 May 2024 , 10:52 AM

5G spectrum valued at ₹96,317.65 Crore,  will be put up for auction starting  June 6th.

Three applications for the auction have been received by the telecom department by India’s three private telcos by the application deadline, ET reported. This time, no new company has applied. One of the units of the Adani group placed a surprise bid in the final auction of 2022.

Prior to the general elections, the auction was supposed to begin on May 20, but the date was moved.

The following frequencies will go up for sale: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.

According to ET, Analysts and industry experts predict that the upcoming spectrum sale will be low key because India’s leading carriers already have enough 5G airwaves to meet their present requirements. Given that they need to renew their airwaves in a few circles, Bharti Airtel and Vodafone Idea (Vi) are probably only going to make a few selective purchases in the auction.

The airwaves in J&K, Odisha, Bihar, UP (East), West Bengal, and Assam need to be renewed by Airtel. In the WB and UP West circles, Vodafone Idea has to renew its spectrum.

The government had taken in more than ₹1.5 lakh Crore from the last spectrum sale, which took place in July 2022 and marked India’s first 5G auction. At reserve prices, it had provided 20 years of airways across 10 5G bands at a frequency of over 72 GHz.

Successful bidders will be able to pay in 20 equal annual installments during the spectrum’s 20-year assignment.

Financial bank guarantees (FBG) and performance bank guarantees (PBG) are not needed to be submitted by spectrum bidders.

According to the September 2021 telecom changes, spectrum purchased at auction would not be subject to spectrum usage charges (SUC).

On May 10, the DoT will release the applicants’ ownership data.

May 17 is the deadline for application withdrawals, and May 20 is when the final bidder list is expected to be announced.

After the DoT issues a demand notice, the successful bidders have ten calendar days to deposit the money. Within 30 calendar days of receiving payment, the department will provide the winning bidder with a frequency assignment letter that details the frequencies.

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