New Delhi: Bids in the ongoing 2G and 3G spectrum auction on Thursday crossed Rs 1 lakh crore in what will bring a big smile on the face of the finance minister.
The proceeds from the coal auction earlier this week crossed the Rs 2 lakh crore mark, exceeding CAG’s earlier loss estimate of Rs 1.86 lakh crore. “At the end of the 49th round, over 86 per cent of the spectrum has been provisionally allocated to bidders at a value of approximately Rs 1,02,000 crores,” stated the telecom department.
On March 12, which was the eighth day of the spectrum auction, bids were received in all bands: 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands. Six rounds of bidding were completed on Thursday.
“The competitive bidding is expected to continue. There is spectrum which is yet to be sold,” said the telecom department officials.
“The bid amount crossing Rs 1 lakh crore shows the trust and optimism in the new government’s ability and potential to take fair decisions and the inherent potential which the telecom segment holds out for future growth,” said telecom minister Ravi Shankar Prasad.
The winners also have the option to make deferred payment. As per this plan these winner bidders will have to make an upfront payment of 33 per cent in the case of 1800MHz band, and 25 per cent in case of 900MHz and 800 MHz within 10 days of declaration of results.
There shall be a moratorium of two years for payment of the balance amount of one-time charges for the spectrum, which shall be recovered in 10 equal annual instalments.
Eight companies are in fray to grab precious airwaves.
Old operators Bharti Airtel and Vodafone are locked in fierce battle to protect their 900 mhz spectrum, which is a more efficient band and requires less opex. Reliance Jio of billionaire Mukesh Ambani has also entered the bidding fray, which is expected to raise the final bids to the discomfort of old perators.
Other operators in the race are Idea Cellular, Anil Ambani-led Reliance Communications, Uninor, Aircel and Tata Teleservices.
