The department of telecommunications began its biggest auction of 2G and 3G waves in the 2100 Mhz, 1,800 MHz, 900 MHz and 800 MHz spectrum. The DoT which conducted six rounds of bids expects to add Rs 82,000 crore to the national exchequer through the auction of waves, and so far on day one it has bids worth about Rs 60,000 crore as indicated by a report by the Press Trust of India.
The report added that the reserve price of the spectrum which is under action is Rs 49,000 crore. It’s worth noting that government had raked in Rs 62,162 crore from the last spectrum auction held in February 2014.
The auctions saw brisk bidding for the 900 Mhz and 2100 Mhz band. However, there was a lot of surprise interest in the 800 MHz band while the 1800 Mhz band did not see too much of demand, the report added. The Financial Express added that the there was not much interest in the 2100 MHz band in the Mumbai, Delhi and Karnataka circles.
The total spectrum put to auction is 103.75 MHz in 800 MHz band, 177.8 MHz in 900 MHz band and 99.2 MHz in 1,800 MHz band for second generation (2G) telephony. The government has also put up 5 MHz in the 2,100 MHz band third generation (3G) telephony. The DoT has selected Kolkata-based mjunction Services Limited as the agency to conduct auction of spectrum in various bands.
The results of day one can be found here (pdf).
Supreme Court ruling on results
Note the government will not release results of the auction because of a court ruling (pdf). The DoT cannot declares results or collect money from the winning bidders. This could mean that the auction money may not come in this fiscal, which will have an impact on the fiscal deficit. Operators have moved various courts across the country seeking an automatic right to extend their licences for another 10 years. The telcos argue that they have offered to pay a suitable fee to the Government rather than having to face the uncertainty of bidding in an auction. The Supreme Court then directed that the auction results will be subject to its final decision on the operators’ plea.
What info is released in the daily reports
However the daily report does contain the clock round price per block, provisional winning price per block, aggregate demand and excess demand. In the first Clock Round, the price per Block in each Service Area in each of the bands will be set equal to the Reserve Price. For subsequent rounds, the Clock Round prices in each service area in each of the bands will be set depending on Excess Demand. If Excess Demand is negative, the Clock Round price in that service area in the particular band will be equal to the Clock Round price in the last completed Clock Round. If Excess Demand is zero or positive, the Clock Round price in that service area in the particular band will be equal to the Clock Round price in the last completed Clock Round plus a strictly positive price increment determined by the amount of Excess Demand.
Here’s a low down of the first day :
– For round 6, the clock price for Mumbai was Rs 548.75 crore which saw a negative demand of -2 and the provisional winning price was maintained at the same.
– In Delhi, the clock price for round 6 was Rs 771.25 crore which saw a negative demand of -3
– The Mahrashtra circle saw a clock price of Rs 427.98 crore and an negative demand of -3 and a provisional winning price of Rs 423.75 crore. While Karnataka saw a clock price of Rs 378.75 crore.
– At the end of Round 6, excess demand was witnessed for 900 Mhz spectrum in the circles of Himachal Pradesh, Odisha, Punjab, Uttar Pradesh (East) and (West)
– Andhra Pradesh had a clock price of Rs 126.07 crore and Gujarat had a clock price of Rs 119.68 crore. Maharashtra had a clock price of Rs 137.53 crore
– Andhra Pradesh saw excess demand in the 1800 Mhz band at the end of Round six with a clock price of Rs 36.55 crore.
– Delhi had a clock price of Rs 3315 crore at the end of round 6 while Mumbai had a clock price of Rs 3245 crore.
– Tamil Nadu had a clock price of Rs 1737.20 crore and Karnataka had Rs 1610 crore