
The much-awaited 5G spectrum auction will take place on Tuesday and the Centre is expected to earn around Rs 1-1.1 lakh crore from it. 72 gigahertz (GHz) of the spectrum – with about 72,000 megahertz (MHz) under nine bands with a validity period of 20 years -- worth Rs 4.3 lakh -- will go on sale in this auction.
Prime Minister Narendra Modi-led Cabinet approved the auction of 5G spectrum on June 15 and allowed non-telecom service providers to bid for spectrum to set up captive 5G networks in India.
Top points to know
1. 72 gigahertz (GHz) of the spectrum with about 72,000 megahertz (MHz) worth Rs 4.3 lakh crore will be put on auction. The auction will begin on July 26.
2. Auction will be held for radiowaves in low-frequency bands (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz and 2,300 MHz), mid (3,300 MHz) and high-frequency bands (26 GHz).
3. Number of days the auction will last will depend on the actual demand for radiowaves and the strategy of individual bidders.
4. These bands will help telcos strengthen network coverage and will be important to balance their investments with each band’s potential benefits.
5. According to brokerage Jefferies, “Operators will bid for 5G networks, reducing SUC (spectrum usage charges) rates and enhancing existing spectrum bands, resulting in demand mainly by 3.3 GHz/26 GHz spectrum bands.”
6. As per the DoT press release, 5G services will be rolled out in 13 major cities as part of the first phase. These cities are Mumbai, Bengaluru, Delhi, Gurugram, Kolkata, Lucknow, Pune, Chennai, Gandhinagar, Hyderabad, Jamnagar, Ahmedabad and Chandigarh.
7. Key contenders in this auction are Adani Data Networks, Reliance Jio Infocomm, Vodafone Idea and Bharti Airtel.
8. Reliance Jio has made Rs 14,000 crore worth earnest money deposit (EMD) whereas Adani Group paid Rs 100 crore as EMD. Bharti Airtel paid an EMD of Rs 5,500 crore whereas Vodafone Idea put in Rs 2,200 crore.
9. EMD amounts indicate a player's appetite, strategy and plan for picking up spectrum in an auction and the eligibility points. Telcos target a specific amount of spectrum in a given circle through eligibility points.
10. Eligibility points allotted to Reliance Jio are 1,59,830, while those allotted to Bharti Airtel are 66,330. Vodafone Idea received 29,370 eligibility points whereas those allotted to Adani Data Networks are 1,650.
(With agency inputs)
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