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India is gearing up for a significant event in the telecom sector as it prepares to auction airwaves valued at a staggering ₹96,317.65 crore. The spectrum auction, scheduled for Tuesday, will witness major private sector telecom companies, namely Reliance Jio, Bharti Airtel Ltd, and Vodafone Idea Ltd, competing for the available frequencies. These telecom giants, collectively servicing close to a billion mobile subscribers, are projected to collectively spend around ₹15,000 crore to acquire spectrum across 4G and 5G bands.
The Department of Telecommunications (DoT) will be conducting the auction, offering radio frequencies in various bands including 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz. The telecom players have already made significant earnest money deposits, with Reliance Jio leading the pack by depositing ₹3,000 crore, followed by Bharti Airtel with ₹1,050 crore, and Vodafone Idea with ₹300 crore.
According to market analysts, the auction is expected to be more subdued compared to previous years, primarily due to the high investments made in 2022 and the current status of 5G spectrum holdings by key players. Reliance Jio, Airtel, and Vodafone Idea are likely to focus on renewing existing spectrum in specific bands, while Jio may look to enhance its portfolio with additional frequencies in the 1800 MHz band.
While the spectrum auction is anticipated to be moderate in terms of overall investment, the outcomes of the auction will play a crucial role in shaping the future landscape of India’s telecom sector, particularly in the context of 4G and emerging 5G services. The auction, originally scheduled for May 20, has been postponed twice, with the final date set for June 25.
Overall, the auction holds immense significance for the telecom industry and is poised to have a lasting impact on the connectivity landscape in India.
