Govt Gets Bids Of Rs113 Bn Via 5G Spectrum Auction

Jio consolidates its leadership position by acquiring the right to use spectrum in the 1800MHz band in 2 circles; Unsold spectrum will again be put to auction next time

Akash M Ambani, Chairman, Reliance Jio Infocomm

FinTech BizNews Service

Mumbai, June 26, 2024: The expiring spectrum in 2024 and the unsold spectrum of previous Spectrum Auction held in 2022 were put to auction this year to meet spectrum requirement of Telecom Service Providers (TSPs) to ensure continuity and growth of the services.

All the available spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands were put to auction. This year auction has seen activity in 900MHz, 1800MHz, 2100MHz and 2500 MHz bands.

Jio, India’s largest digital services provider, acquired additional spectrum in the 1800 MHz band in Bihar and West Bengal.

With this acquisition, Jio has expanded its 1800 MHz band spectrum in two circles. Jio's spectrum footprint has increased to 26,801 MHz (uplink + downlink), solidifying its leadership position. Jio has already deployed the largest amount of spectrum pan-India on bandwidth efficient technologies like 4G and 5G, with this incremental spectrum acquired to address geography-specific demand and ensure the highest quality customer experience on its network.

Jio is the only operator in India to have access in low-band, mid-band and high-band (700 MHz, 3300 MHz and 26GHz) spectrum which gives it the unique advantage to provide a superlative experience to customers on 5G.

The Auction started on 25th June  2024 at 10:00 AM and concluded on 26th June 2024 at 11:45 AM after 7 rounds. As auction for 5G spectrum was held recently & 5G Monetization is still in progress, no bidding took place in 800MHz, 2300MHz, 3300MHz and 26GHz bands. A total quantum of 141.4 MHz  (26.5%) was sold from the balance 533.6 MHz Spectrum. This is despite the fact that a very large amount of spectrum i.e., 51.2 Ghz of spectrum was sold in August 2022.

All the three TSPs i.e., M/s Bharti Airtel Limited, M/s Reliance Jio Infocomm Limited  and M/s Vodafone Idea Limited have successfully bid and taken spectrum in this auction also for growth and continuity of services. A total quantum of 141.4 MHz spectrum of worth Rs 11,340 Crores was sold. 

(All values in MHz)

Table 1: Band/bidder wise summary of quantum of spectrum sold
 

      (All values in Rs crore)

Table 2: Band/bidder wise summary of value of spectrum sold

M/s Bharti Airtel Ltd. and M/s Vodafone Idea Ltd. have successfully renewed their expired spectrum in 900 MHz and 1800 MHz bands and further an additional quantum of 87.2 MHz  worth Rs 6164.88 cr has been acquired by TSPs to augment their services

The unsold spectrum will again be put to auction next time.

Akash M Ambani, Chairman, Reliance Jio Infocomm Limited, said: “We have already demonstrated our commitment to the Digital India Vision by rolling out one of the world’s fastest and widest Stand Alone 5G networks within 12 months of allotment of spectrum. This new spectrum acquisition will continue to enable us serving aspirations of the new India, in terms of growing traffic demands and superior customer experience, which is no longer limited to only urban markets. We want every Indian to enjoy the transformational benefits of Jio’s next generation of digital solutions.”

KEY HIGHLIGHTS OF JIO’S SPECTRUM ACQUISITION

Circle-wise details of technology agnostic spectrum acquired in the 1800 MHz band for 20 years are as under:

The above numbers are provisional, and subject to DOT confirmation.

As per terms of the spectrum auction, the above spectrum cost can be paid over 20 equated annual instalments, with interest computed at 8.65% per annum.