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Tag: Spectrum bid

  • Spectrum bid revenue up 37% from last time; Govt denies tariff increase

    Spectrum bid revenue up 37% from last time; Govt denies tariff increase

    NEW DELHI: Even as the government has allocated spectrum worth more than Rs 1.09 lakh crore, Telecom minister Ravi Shankar Prasad has said this will not mean any rise in mobile tariffs.

     

    Tariff impact after the auctions will not be more than 1.3 paise per minute for users,” he said. About the criticism over high spectrum prices, he said, “It is not correct to speculate that prices of mobile calls will increase. We have seen estimates and analyses.”

     

    The spectrum won would be with telecom companies for 20 years. Hence, the total bids of about Rs 1.1 lakh crore, if spread over 20 years, would lead to a payout of only Rs 5,300 crore a year for operators. The annual revenues, he said, of mobile companies in India collectively are roughly Rs 2 lakh crore.

     

    The successful bidders have to pay 33 per cent of the amount within 10 days of the result of the auction and the balance 67 per cent is to be paid by the TSPs over the next 12 years (of which there will be a moratorium of two years and and then ten equally).  

     

    Meanwhile, the Supreme Court permitted the government yesterday to declare the results of the bidding and also to commence work of allocation.

     

    However, the judges made it clear that this was subject to the final judgment in the bunch of petitions challenging the conditionalities in the notice inviting applications to join the e-auction process.

     

    The spectrum auction in 2100 MHz, which caters to 3G, 1800 MHz, 900 MHz, and 800 MHz band, which commenced on 4 March and ended on 25 March after 115 rounds over 19 days, has fetched over Rs 109,874 crore. However, approximately 11 – 12 per cent spectrum remained unsold.

     

    In all, 470.75 MHz has been put to auction in various local service areas. This compares with 390 MHz in November 2012 and 426 MHz in February 2014.

     

    There was robust activity in the all the spectrum bands and vibrant bidding. Prices have significantly increased in 50 of the 69 offerings with bid price being as high as 300 per cent over reserve price in some instances. Overall increases over estimated proceeds from auction is about 37 per cent.

     

    In November 2012, the total realization from auction of spectrum in 1800 MHz band was Rs 9407 crore and in February 2014 Rs 61,162 crore has been realized. 

     

    Since the Supreme Court has given the leave to proceed further, the provisional results are being declared. Of the eight participants in the auction, seven have been awarded spectrum.

     

    This is the first time that spectrum has been offered simultaneously in four bands. In previous auctions, different bands were auctioned sequentially. This auction design has enabled bidders to take informed decisions while placing bids and consider alternatives dynamically.

     

    Another noteworthy feature is that for the first time there is robust demand for 800 MHz band, which in previous auctions had seen very sluggish response.

     

    Some of the steps taken to enhance transparency as well as to remove barriers to participation included five MHz spectrum in 2100 MHz band released to increase availability of spectrum; in principle approval was received from Defence to release further 15 MHz in 2100 Mhz band to the telecoms sector; earnest money percentage was reduced to between 11-25 per cent, earlier in some instances it was over 40 per cent; taking into account suggestions and request from operators the ‘extension’ budget – that is the extra time allowance for bidding was increased from 240 minutes to 360 minutes.

     

    Orders on applicable Spectrum Usage Charges (SUC) were issued before the auction, which reduced the regulatory risk of the bidders and the modalities for liberalization of 800 MHz spectrum was notified.

     

    Transparent and clear rules for allocation of spectrum were notified for the first time. Earlier spectrum other than the contiguous spectrum was allotted randomly.

     

    The Department also took steps towards putting in place a roadmap for availability of spectrum by notifying the Defence Band and Defence Interest zone.

  • Spectrum auction ends with bid amount crossing Rs 1.09 lakh crore

    Spectrum auction ends with bid amount crossing Rs 1.09 lakh crore

     
    NEW DELHI: Around eleven per cent of the spectrum has remained unsold after the auction came to a close on 25 March with bid amounts touching a whopping Rs.109,874 crore.
     
     
    The auction lasted nineteen days with a total of 115 rounds.
     
     
    Communications and Information Technology sources told Indiantelevision.com that the entire spectrum could not be sold because of a slowdown in 2100 MHz band, which caters to 3G and a dip for 1800 MHz band. 
     
     
    The other bands up for auction were 900 MHz and 800 MHz, which saw robust action. A majority of service areas were auctioned at a premium over reserve price.
     
     
    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

     

  • Spectrum bid amount touches Rs 1.09 lakh crore after 110 rounds

    Spectrum bid amount touches Rs 1.09 lakh crore after 110 rounds

    NEW DELHI: The bid amount for the spectrum auctions has touched Rs 109,000 crore at the end of 110 rounds, though bidding remains slow in the 2100 MHz band, which caters to 3G and also showed a dip for the 1800 MHz band.

     

    With 89 per cent of the spectrum having been provisionally allocated to bidders, about 11 per cent of the spectrum still remains. Competitive bidding will continue for the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands.

     

    Active bidding continued on the eighteenth day with a majority of service areas going at a premium over reserve price. There was robust auction with 100 per cent activity requirement and activity in new service areas in 900 MHz and 800 MHz bands.

     

    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

  • Spectrum bids touch Rs 1.07 lakh crore over weekend after Friday dip

    Spectrum bids touch Rs 1.07 lakh crore over weekend after Friday dip

    NEW DELHI: With six rounds on Friday and five on Saturday, the bid amount for the spectrum auctions has touched Rs 107,000 crore at the end of 97 rounds, but bidding appears to have slowed down in 2100 MHz which caters to 3G. 

     

    The result of this slow down was reflected on Friday when the bid amount dipped to Rs 105,000 crore from Rs 109,000 a day earlier.

     

    A Telecom ministry official told Indiantelevision.com, “In the auction design, over rounds, with increase in price sometimes lesser number of blocks are provisionally allocated at higher price, and thus the total amount may fluctuate a little. However, this may even out over the next few rounds of bidding.”

     

    With this, approximately 11 per cent of the spectrum still remains and so auction will continue for the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands.

     

    Active bidding continued on the sixteenth day with a majority of service areas going at a premium over reserve price.

    There is robust auction with 100 per cent activity requirement and activity in new service areas in 1800 MHz, 900 MHz and 800 MHz bands.

     

    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

     

  • Spectrum bid amount touches Rs 1.09 lakh crore; 11% spectrum available

    Spectrum bid amount touches Rs 1.09 lakh crore; 11% spectrum available

    NEW DELHI: The bid amount for the spectrum auctions has now touched Rs 109,000 crore at the end of 86 rounds on 19 March, even though bidding appears to have slowed down in 2100 MHz (catering to 3G) and 900 MHz.

     

    With this about 11 per cent of the spectrum still remains and hence auction will continue for the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands.

     

    Active bidding was still on after six rounds were completed on the fourteenth day with a majority of service areas going at a premium over reserve price.

     

    There is robust auction with 100 per cent activity requirement and activity in new service areas in 1800 MHz and 800 MHz bands.

     

    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

  • Spectrum bid continues over Rs 1.08 lakh crore; activity slow for 2100 & 900 MHz

    Spectrum bid continues over Rs 1.08 lakh crore; activity slow for 2100 & 900 MHz

    NEW DELHI: The bid amount for the spectrum auctions has now touched Rs 1.08 lakh crore at the end of 80 rounds on 18 March, even though bidding appears to have slowed down in 2100 MHz, which caters to 3G and 900 MHz. 

     

    With this, about 89 per cent of the spectrum has been provisionally allocated in the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands.
     

    Active bidding was still on at the end of the 80th round with six rounds completed on the eleventh day with majority of service areas going at a premium over the reserve price. 

     

    There is robust auction with 100 per cent activity requirement and activity in new service areas in 1800 MHz and 800 MHz bands.

     

    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

     

  • Spectrum bid amount continues over Rs 1.03 lakh crore; 3G band activity slows down

    Spectrum bid amount continues over Rs 1.03 lakh crore; 3G band activity slows down

    NEW DELHI: The bid amount for the spectrum auctions has now touched Rs 103,046 crore at the end of 67 rounds on 16 March, even though bidding appears to have slowed down in 2100 MHz, which caters to 3G. 

     

    With this, more than 87 per cent of the spectrum has been provisionally allocated in the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands now.

     

    Active bidding was still on at the end of the 67th round with six rounds completed on the eleventh day with majority of service areas going at a premium over reserve price.

     

    There is robust auction with 100 per cent activity requirement and activity in new service areas in 1800 MHz, 900 MHz and 800 MHz bands.

     

    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

  • Bid amount for spectrum continues to rise above Rs 1 lakh crore; 13% still available

    Bid amount for spectrum continues to rise above Rs 1 lakh crore; 13% still available

    NEW DELHI: The bid amount for the spectrum auctions continues to be above the figure of Rs 1 lakh crore with around 13 per cent spectrum still available for allocation.

     

     With this around 87 per cent of the spectrum has been provisionally allocated in the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands now.

     

     Aggressive bidding was still on at the end of the 55th round with six rounds completed till 13 March. The bid amount figure had been recorded at Rs 1,02,000 crore yesterday evening.

     

    The auction will continue in all bands with brisk bidding in 1800 MHz, 900 MHz and 800 MHz bands.

     

    A majority of service areas are going at a premium over reserve price. With 100 per cent activity requirement and activity in new service areas, competitive bidding is expected to continue.

     

    The government had initially expected to reap around Rs 49,000 crore from the auction, though the Communications and IT Ministry sources had later predicted that it would get close to Rs 1 lakh crore.

  • Spectrum bid: Six e-auction rounds held; bidders commit Rs 60,000 crore

    Spectrum bid: Six e-auction rounds held; bidders commit Rs 60,000 crore

    NEW DELHI: Six rounds of bidding were completed in the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands, which began today. 

     

    The bidding has taken place in all bands, according to the Communications and Information Technology Ministry.

     

    At present, a value of approximately Rs 60,000 crores has been committed by bidders against the value (at reserve price) of around Rs 49,000 crores of provisionally won spectrum.

     

    However, spectrum is still available and bidding for this will re-commence tomorrow.

     

    The estimated revenue from the auction of spectrum is targeted at Rs 64,840 crore (excluding 2100 MHz spectrum) of which Rs 16,000 crore is expected to be realized in the current financial year.

     

    The reserve price approved is Rs 3646 crore pan-India per MHZ in 800 MHz, Rs 3980 crore for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and Jammu and Kashmir; Rs 2191 crore pan India (excluding Maharashtra and West Bengal) in 1800 MHz band.

     

    A meeting of the Union Cabinet chaired by Prime Minister Narendra Modi had, early in January, approved the proposal of the Department of Telecom to proceed with auction in 800, 900 and 1800 MHz bands.

     

    The quantum of spectrum to be put to auction was 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800,900 and 1800 MHz was being put to auction. 

     

    Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of February 2014.

     

    The Cabinet had also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later.

     

    Later that month on 15 January, the Telecom Regulatory Authority of India opined that clubbing the 2100 MHz band spectrum with the spectrum of other bands for auction in February will be defeated if sufficient spectrum is not made available in the 2100 MHz band.

     

    “A split auction of 2100 MHz (one in February 2015 and remaining say, in December 2015 after availability from Defence Ministry) will artificially increase the market price of 2100 MHz in February because of the severe supply constraint. The 15 MHz of spectrum in the 2100 MHz spectrum being vacated by the Defence Ministry should be auctioned in view of the in-principle agreement reached with MoD, even if it is not available immediately,” TRAI had said.

     

    The Authority reiterated that in the auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than two blocks in a local service area if three to four blocks are available in that local service area.

     

    TRAI had said there was no change in the reserve prices for spectrum in the 2100 MHz bands from what were recommended earlier.

     

    It said that the Department of Telecom is responsible to ensure that the spectrum being auctioned is either interference free or to share information upfront about the areas where interference is likely to occur so that the telecom service providers participating in the auction can take informed decision.

     

    These views were given to the DoT in Clarifications/Reconsideration of Recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band’.