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Spectrum auctions brings Rs. 1,09,874 cr to government kitty

The spectrum auction which ended yesterday has fetched over Rs 109874 Crore

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Soma Tah
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NEW DELHI: The spectrum auction which ended yesterday has fetched over Rs 109874crore after 115 rounds bidding over 19 days. The government will get a minimum of Rs 28,000cr upfront payments as earnest money deposit.

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Over 88 percent of the total 470.75 MHz spectrum on offer has been provisionally committed.

The Supreme Court, today, permitted the government to declare the winners of the spectrum auction. Among the eight participants in the auction, seven operators have been awarded spectrum.

Prices have significantly increased in 50 of the 69 offerings with bid price being as high as 300 percent over reserve price in some instances. Overall increases over estimated proceeds from auction is about 37 percent.

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Earnest money deposit percentage was reduced to 11-25 percent from the 40 percent EMD requirement of the earlier auctions.

This is the first time that spectrum has been offered simultaneously in four bands across 800 MHz, 900 MHz, 1800MHz and 2100 MHz. This auction design has enabled bidders to take informed decisions while placing bids and consider alternatives dynamically.

An unprecedented and robust demand for 800 MHz band has been noticed this time which has seen very sluggish response in previous auctions.

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