Massive Spectrum Auction Set to Shape India's 5G Future

Spectrum worth over Rs 96,000 crore is set for auction on Tuesday, with key telecom operators like Reliance Jio, Bharti Airtel, and Vodafone Idea bidding for essential 5G radio waves. The government will auction eight spectrum bands crucial for mobile phone services, influencing India's 5G landscape.

The stakes are high as spectrum worth more than Rs 96,000 crore goes under the hammer starting Tuesday. Key players, including Reliance Jio, Bharti Airtel, and Vodafone Idea, are set to bid for critical radio waves necessary for 5G mobile services.

This auction is particularly significant as it's only the second time 5G spectrum is being included. The government plans to auction eight bands, offering a lucrative opportunity for telecom operators to strengthen their market position. The base price of the available spectrum stretches to about Rs 96,317 crore.

Reliance Jio has taken an aggressive stance by depositing Rs 3,000 crore as earnest money, giving it the potential to bid for a substantial share of the available spectrum. In contrast, Bharti Airtel and Vodafone Idea have deposited Rs 1,050 crore and Rs 300 crore, respectively.

Telecom expert Parag Kar projects Jio could capture 37.36% of the total spectrum value based on its earnest money deposit while Bharti and Vodafone Idea trail at 13.07% and 3.73%, respectively. Kar suggests that Jio may eye the 800 MHz band, which could result in a cash outflow of Rs 18,000 crore.

Vodafone Idea aims for strategic acquisitions, especially within the 26 GHz band, aiming to reduce its spectrum usage charges. Meanwhile, Bharti Airtel is looking to enhance its 5G coverage selectively by adding sites and focused spectrum renewals.

The auction may see muted activity with selective bidding, particularly attracting attention to the 3300 MHz band, integral for cost-effective 5G services.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)