The Indian government raised a total INR 657.89 billion (USD 9.9 billion) in the country’s largest ever spectrum auction, which closed on 6 October after five days of bidding. The government sold only 40 percent of the record 2,353MHz airwaves on auction, as the 700 MHz band failed to attract any bidders. The government would have raised INR 5.6 trillion if all the spectrum on auction had been sold at the reserve price.
Vodafone India acquired spectrum in all its key telecom circles in the auction, paying the top price of INR 202.8 billion (approximately EUR 2.74 billion). Vodafone India acquired a total of 2x82.6 MHz FDD and 200 MHz TDD spectrum in the auction, providing 4G capability across the 1,800, 2,100 and 2,500 MHz bands.
Airtel bought 173.8 MHz of spectrum in the 1,800 MHz, 2,100 MHz and 2,300 MHz frequency bands for INR 142.4 billion. Airtel said it has secured spectrum requirements for the next 20 years and now has 4G and 3G spectrum in all circles.
Newcomer Reliance Jio Infocomm acquired the right to use 269.2 MHz spectrum across all 22 service areas in India. The total cost for the 20-year licences is INR 136.7 billion.
Finally, Idea Cellular acquired 349.2 MHz of spectrum with total bids of INR 127.9 billion. Idea secured an additional 2x74.6 MHz spectrum in on the 1,800 and 2,100 MHz bands and 200 MHz of TDD spectrum in the 2,300 and 2,500 MHz bands. Idea Cellular plans to use this additional spectrum to expand its mobile broadband network coverage across all 22 telecom circles of India.
The government is not disappointed with the results, but believes the "lack of eco-system" drove away the potential bidders for the 700MHz band, said Telecom Minister Manoj Sinha. According to India’s telecom secretary JS Deepak, however, the auction was a "substantive achievement", as the government will receive INR 320 billion as upfront payment from the sale, which is the "highest in the last five years", The Times of India reported. The rest of the payment will be over a 10-year period after a two-year moratorium.