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Spectrum Bonanza for Government

, March 25, 2015, 0 Comments

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Provisional Bids of Rs. 1.09 lakh cr after 110 rounds of bidding in 19 days. Winning bidders will pay 25% – 30% of the winning price initially and the rest would be paid by 2027.

Its not raining but pouring as far as spectrum auction is concerned for the government. After getting to a smooth start, auction ended today after 110 rounds which took 19 days to complete. The auction started on March 4.

The spectrum which show intense bidding from the existing player to retain the spectrum they got along with the new enterant such as Reliance Jio which will roll out Pan India 4G services in very short time.

Brisk bidding was witnessed in 900 MHz, 1800 MHz, 2100 MHz and 800 MHz. In its later part of bidding 900 MHz and 800 MHz attracted quite interest.

The government offered for commercial use a total of 380.75 MHz of spectrum comprising 800 MHz, 900 MHz and 1,800 MHz bands, and in the 2,100-MHz band , five MHz of air wave across 17 of the 22 circles.

Various estimates were doing the rounds ranging from 90,000 crore to 100,000+ crore, for the possible revenue government could realize through auction of airwave.

Brokerage firm Morgan Stanley had, in a note, predicted the government’s earning at around Rs 1.18 lakh crore. Revenue mobilisation through spectrum auction will act as catalyst in order to meet fiscal deficit.

For the time being, Final results of the spectrum auction will remain unpublished, as the Supreme Court has barred DoT to do so without its permission. A hearing in this regard is scheduled for tomorrow.