Bidding crosses Rs. 1,09,000cr on fourteenth day of spectrum auction

BANGALORE, INDIA: Brisk bidding in the 800MHz and 1800MHz bands over the last two days has been able to pump a provisional bidding value of over Rs. 1,09,000 crore in the government's kitty so far.

The government is likely to get at least Rs. 27,000 crore immediately from the spectrum auction, as bidders who win finally have to make an upfront payment of 25-33 per cent of the final sale price.

The interest level of telcos in the 800MHz band is quite high for the 4G LTE capability of the band. The interest level did not drop on the thirteenth and fourteenth day of spectrum auction also as excessive demand is seen in Maharashtra, Delhi and North East circles for the 800MHz band.

Bidding was muted in the 1800MHz, and the 2100MHz bands for the last couple of days. But, an excess demand for the 1800MHz has been seen on Wednesday from the Kerala circle. Among all the 21 circles, only a couple of telecom circles have witnessed activity on Thursday.

The proceeds from this auction has already surpassed the 2010 spectrum auction numbers, which garnered a record amount of 1,06,000 crore by selling 3G and 4G spectrum.

More than 89 percent of the spectrum has been provisionally allocated to bidders so far after 86 rounds of bidding.