By the end of day 5, on Thursday 15th April 2010, India had completed 28 rounds of its auction of 3G spectrum, with the provisional winning price for 3G spectrum across India at Rs. 48.308 billion, 38 percent higher than the base price of Rs. 35 billion.
At the end of six rounds of auction on April 15th 2010, the base price was up by Rs. 2.413 billion, compared to 2.59billion up at the end of six rounds the previous day.
Worth noticing is that, at the end of each set of rounds, the provisional winning price for certain service areas has been lowered, albeit marginally. Service areas in which the provisional winning price was lower than bid price:
— Punjab, at Rs. 1.273 billion, instead of Rs. 1.286 billion
— West Bengal, at Rs. 1.236 billion, instead of Rs. 1.248 billion
— Himachal Pradesh, at Rs. 0.3 billion, instead of Rs. 0.303 billion
— Bihar, at Rs. 0.324 instead of Rs. 0.327 billion
What is common among these service areas, is that they have consistently shown lower demand than supply, with no bids at all for Punjab, Assam, Jammu and Kashmir, Orissa and West Bengal. The increase in price, so far:
— Gujarat, surprising all, has maintained its momentum, and continues to be the highest priced circle at Rs. 4.87 billion leaving the rest behind. It’s followed by Delhi at Rs. 4.645 billion, and Tamil Nadu at Rs. 4.557 billion.
— Andhra Pradesh and Maharashtra are provisionally at Rs. 4.25 billion each, with Karnataka at Rs. 4.21 billion and Mumbai at Rs. 4.17 billion. The demand for Mumbai continues to befuddle.
— UP (East) surprisingly continues to dominate Category B circle bidding, with a price of Rs. 1.93 billion. I had expected UP (West) to dominate.