Although brokerage sources speculate that the sale might bring in between Rs 4,000 crore and Rs 16,600 crore, the government hopes to collect around Rs 10,000 crore. The government raised a record Rs 1.5 lakh crore in the 2022 auction.
US is looking into cloud dangers and internet use at China Mobile and Telecom.
On June 25, India will hold this year's spectrum auction, where airwaves valued at Rs 96,317.65 crore would be sold. The auction has been delayed twice; the original date was May 20.
Although brokerage sources speculate that the sale might bring in between Rs 4,000 crore and Rs 16,600 crore, the government hopes to collect around Rs 10,000 crore. The government raised a record Rs 1.5 lakh crore in the 2022 auction.
It is anticipated that just 17% of the spectrum would be sold, which is probably the lowest since 2014. Because there isn't extra demand, analysts believe that spectrum will be auctioned close to reserve pricing.
Frequencies in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands will be up for sale by the Department of Telecommunications (DoT).
The spectrum purchased at this auction is good for 20 years. After ten years, telcos are free to lease, swap, share, and give up the spectrum.
In order to avoid paying interest, telcos may decide to pay the whole amount up front. Compared to the 7.2 percent interest rate in the 2022 auction, the interest rate for delayed payments in this auction is 8.65 percent.
They have two alternatives for payment: 20 annual installments, the first of which is due 10 days after the auction, or partial payments with associated moratoriums. Payment in advance is accepted without penalty.
The 600 MHz and 700 MHz bands were not included in the telecom department's (DoT) most recent round of spectrum auction. Additionally, the agency raised reserve pricing for the 26, GHz and 3,300 MHz bands by 8.9 percent and 12 percent, respectively.
Prices for spectrum in bands or circles that showed interest in the 2022 auctions likewise went up by 11–14%.
Reliance Jio, Bharti Airtel Ltd., and Vodafone Idea Ltd. are anticipated to fight for spectrum and spend around Rs. 15,000 crore on 4G and 5G bands, according to experts.
Three telecom companies—Reliance Jio, Bharti Airtel, and Vodafone Idea—have deposited earnest money totaling Rs 4,350 crore.
The three largest deposits were made by Reliance Jio ($3,000 crore), Bharti Airtel ($1,050 crore), as well as Vodafone Idea ($300 crore). Based on their earnest money deposits, telcos are able to bid three or four times the amount.
With an estimated expenditure of Rs 10,400 crore, Bharti Airtel may be the largest bidder in the 2024 spectrum auction. Analysts speculate that the telecom giant wants to increase its stake in the 1800 and 2300 MHz bands and solidify its sub-1GHz holdings. In six circles of Assam, Bihar, J&K, Orissa, UP East, and West Bengal, it is up for spectrum renewal at 42 MHz.
Resolving its outstanding spectrum auction debt helped the Sunil Mittal-led telecom company minimize interest expenses.
Conversely, Vodafone Idea may decide to renew 900 MHz in two rings. Bengal and UP West are the two circles where the telecom is dealing with 900 MHz renewals. IIFL said in a research note, "We expect the telco to pick up 5MHz and 4.6MHz in this band."
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