As per the government, the objective of this auction is to obtain a market determined price of all the spectrum blocks.(Mint)
As per the government, the objective of this auction is to obtain a market determined price of all the spectrum blocks.(Mint)

Spectrum auction begins, 5G not included: All you need to know about bidding process

Here is what all you need to know about the much-awaited auction.
By hindustantimes.com | Written by Deepali Sharma
UPDATED ON MAR 01, 2021 04:14 PM IST

Spectrum auction in India began on Monday, with 2,251.25 megahertz (MHz) radiowaves valued at 3.92 lakh crore up for bidding.

The auction is being held for seven frequency bands for mobile services - 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands.

Here is what all you need to know about the much-awaited auction:

The spectrum bought and assigned will be valid for 20 years. It does not include frequencies in 3,300-3,600 Mhz bands that were identified for 5G services, which will happen later.

According to government, the bidders will be have a choice to pay upfront 50 per cent of the final bid for 1,800, 2,100, 2,300, and 2,500MHz bands and the remaining amount can be paid in two years in 16 equal installments at the interest rate of 7.3 per cent, following the moratorium of two years. The upfront amount for 700, 800 and 900 MHz is 25 per cent of the final bid.

Reliance Jio with a paid up capital of 1.54 lakh crores has the highest Earnest Money Deposit (EMD) amount in the bid 10,000 crore, followed by Bharti Airtel's EMD at 3,000 crore and Vodafone Idea at 475 crore.

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The bidders in the auction are required to show a net worth of 100 crore per service area in which the bidder wants to submit the bid, the government said.

The successful bidder will also be required to pay three per cent of the Adjusted Gross Revenue (AGR) excluding wireline services as part of spectrum usage charges, according to the government.

The government has also allowed spectrum sharing between telecom services in certain spectrum bands won in the auction after one year from the date of 'Frequency Assignment'. "Spectrum blocks in the liberalised spectrum or acquired through auction(s) may be combined if required by technology and there are no restrictions on the technology to be deployed for providing services within the scope of the service license."

As per the government, the objective of this auction is to obtain a market determined price of all the spectrum blocks.

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