5G Spectrum Auction: Govt Gets Bids Worth Around Rs 11,131 Cr On Day 1
Telecom companies have shown significant interest in multiple frequency bands, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2500 MHz, 3300 MHz, and 26 GHz
The Union government has received bids totaling approximately Rs 11,131.6 crore on the first day of the 5G spectrum auctions. The auction, which saw five rounds of bidding, will continue on June 26 and is expected to conclude on the same day.
Telecom companies have shown significant interest in multiple frequency bands, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2500 MHz, 3300 MHz, and 26 GHz. The details were published in the Day 1 report on the Department of Telecommunications website.
On Day 1 of the 5G spectrum auction, significant interest was shown across various frequency bands. In the 900 MHz band, telecom companies acquired 41 MHz of spectrum for Rs 4,465 crore. The 1800 MHz band saw the purchase of 48.4 MHz of spectrum for Rs 6,306.6 crore, while 5 MHz of spectrum in the 2100 MHz band was bought for Rs 360 crore.
The spectrum acquired in this auction will be valid for 20 years. Telcos have the flexibility to share, trade, lease, and surrender the spectrum after 10 years. This flexibility is expected to enhance the strategic planning capabilities of telecom companies as they deploy their 5G networks.
Telecom companies might consider paying the full amount upfront to avoid higher interest costs. The interest rate for deferred payments in this auction is set at 8.65 per cent, which is notably higher than the 7.2 per cent rate in the 2022 auction. This rate difference could influence the payment strategies of the bidding companies.
The continuation of the auction on June 26 is anticipated to further boost the government's revenue and enhance the rollout of 5G technology across India. The successful completion of this auction is crucial for accelerating the deployment of 5G services, which are expected to significantly impact various sectors, including healthcare, education, and industry.
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