The Centre is likely to garner revenues beyond its muted expectation from the 4G spectrum auction which began on Monday, but the mop-up would be a fraction of the Rs 3.92-trillion worth of airwaves put up for sale. Coming five years after the 2016 auctions, the much-awaited 4G spectrum bidding, where Reliance Jio emerged as the most active participant, has assured the government revenues of more than Rs 77,000 crore in four rounds on day one itself.
Communications, electronics and information technology minister Ravi Shankar Prasad said that telecom operators placed bids worth ₹77,146 crores in India’s first 4G spectrum auction in more than four years against the government’s expectation of 45,000 crores.
“Bidding will continue in the first half tomorrow (Tuesday). There were three bidders in today’s auction versus seven players in the 2016 auction. Of the total spectrum put up for sale, bids of ₹77,146 crores were received,” Prasad added.
“The legal process is that once the price of a spectrum band is put on auction, we will have to go to TRAI (Telecom Regulatory Authority of India) for reconsideration of fresh price,” Prasad concluded.
By the end of the first day, 37 per cent of the spectrum by the quantity and 19 per cent by value was sold. Airwaves in the 800 Mhz and 2300 Mhz bands received the maximum response. Nearly 65 per cent of the 800 Mhz spectrum—conducive for 4G–and 89 per cent of the airwaves offered in the 2300 Mhz band were sold. Reliance Jio, which had paid the highest earnest money deposit of Rs 10,000 crore, was believed to be a top buyer in 800 MHz.
