No big bangs before Diwali: India auction of 2G spectrum in the 1800 MHz band began on Monday on a relatively quiet note, with the total bids by round seven increasing only by Rs 6.83 crore to Rs 3506.83 crore. Only 4 states reported an increase in bids over the base price – Bihar (up Rs 1.7 crore), Gujarat (up Rs 2.24 crore), UP (East) (up Rs 0.76 crore) and UP West (up Rs 2.14 crore). However, at the end of the seventh round, Delhi, Gujarat, Karnataka, Mumbai, Rajasthan, and UP (West) reported no bids, and only the price for the Bihar circle has gone up beyond the base price, by Rs 0.44 crore.
None of the four metro states reported an increase in bid price over their base price. Only Gujarat, from our list of seven key states (Delhi, Mumbai, Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu) reported an increase in bid price.
This wasn’t unexpected, because there are only five bidders, unlike the long list of applicants before the rather expensive 3G auctions. The telecom ecosystem has gone through a particularly tough time since the 3G auctions, and it appears that this auction won’t quite be as successful for the Indian government.
– Bharti Airtel
– Idea Cellular Limited
– Vodafone South Limited
– Videocon Telecommunications
– Telewings Communications (Telenor)
Some Auction notes
– 8 blocks each of 1.25MHz (10MHz) are being auctioned in all Service Areas
– A Bidder who is categorized as an “Existing Licensee” in a particular Service Area can submit a bid for either One or Two Blocks in that Service Area. A Bidder who is categorized as a “New Entrant” in a particular Service Area can submit a bid for either Four or Five Blocks.
– There is a provision of up to 3 blocks each of 1.25 MHz (3.75MHz) for topping up the 8 blocks, which Existing licensees can bid for. However, there are no Top Up Blocks available in the Service Areas of Mumbai and Delhi.
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