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Rs. 60,000cr for govt. coffers on first day of spectrum auction

a value of approximately Rs. 60, 000 crores has been committed by bidders on the first day of the spectrum auction

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Soma Tah
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NEW DELHI, INDIA: The opening day of the spectrum auction has seen bids reaching the value of around Rs. 60,000 crore after six rounds of bidding.

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The bidding opened for all the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands. The government expects to garner over Rs. 80,000 crores from the sale.

"The bidding has taken place in all bands. At present, a value of approximately Rs. 60, 000 crores has been committed by bidders against the value (at reserve price) of around 49,000 crores of provisionally won spectrum. There is still spectrum, which is yet to be sold," said the telecom department.

The eight telcos who are participating in this auction include Bharti Airtel, Vodafone India, Idea Cellular, Reliance Communications, Telewings Communications Services(Uninor), Aircel, Tata Teleservices along with the new entrant Reliance Jio Infocomm, which is planning to roll out its services this year.

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Idea Cellular’s 9 circles, 6 circles of Airtel and 7 circles each of Vodafone and Reliance Telecom are coming up for renewal either in December this year or in the month of April next year. Bidding is compulsory for these providers have to bid to continue offering services in those circles.

These eight opearators have submitted an earnest money of Rs. 20,436 crore, with the highest amount submitted by Reliance Jio, whch indicates an intense bidding.

Sources familiar with the matter confirmed that aggresseive bidding has been seen for the 900MHz band as most of the licences coming up for renewal hold 900MHz band spectrum. According to Fitch, auction price could rise at least 20 percent higher than the reserve price.

The bidding will continue until the time all spectrum on the block is sold or until the companies stops bidding.

telecom