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Jio Buys most 4G spectrum as Bids

The applications for participation within the upcoming 4G spectrum auctions start on March 1 have filed by Telecom market leader Reliance Jio. Second ranked Bharti Airtel and financially stressed Vodafone Idea (Vi). The government generated Rs. 77,146 crore on the day one of the 4G spectrum auction. It is over 71% higher than what it had expected with Reliance Jio Infocomm. Bharti Airtel and Vodafone Idea bid to renew airwave permits expiring from July.

Spectrum auction: All about bidding

The sale, which closed tuesday, will however fall short of the Rs. 3.92 lakh crore that the govt. may have generated all airwaves on offer been sold at base price. The Centre will get Rs.12,000-13,000 crore as upfront payment this fiscal through March 2021, and a similar amount in the next.

Telecom secretary Anshu Prakash added that the telcos might want to shop for 700 MHz spectrum which is taken into account good for 5G as wellas at subsequent sale to be held in FY22, which can see the debut of airwaves within the 3300MHz-3600MHz band, earmarked by the govt for supporting subsequent generation technology.

Jio Buys most 4G spectrum as Bids

For the spectrum auctions Jio, Airtel and Vodafone Idea had submitted total earnest deposits of Rs. 13,475 crore.  Jio, with a net worth of Rs1.79 lakh crore, had submitted Rs. 10,000 crore, the foremost among the three private telcos, underlining expectations that it might be the foremost aggressive. With net worth Rs. 71,303 crore Bharti Airtel had submitted EMD of Rs. 3,000 crore. With a negative net worth Rs. 43,474 crore Vodafone Idea has submitted EMD of Rs. 475 crore.

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The spectrum auctioned this point may be a mixture of renewal spectrum and new spectrum in select bands like 700 MHz, 2300 MHz and 2500 MHz. There might not be much action within the 2100 MHz because the Airtel and Vi have adequate airwaves therein range and also Vi has some in 2500 MHz also . The 700 MHz bands may again go unsold, as it did within the previous auctions, four years ago.

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