PARIKRAMA
SENIOR MEMBER
- Jan 5, 2014
- 4,871
- 185
- Country
- Location
Spectrum auction attracts Rs 65,000 cr bids on second day
PTI New Delhi Last Updated: March 5, 2015 | 22:25 IST
The second day of the biggest ever telecom spectrum auction ended on Thursday with total bids growing to about Rs 65,000 crore, as the telecom operators bid aggressivelyacross all bands including those for 2G and 3G.
The auction will continue on Friday, despite it being a holiday on account of Holi festival.
Sources said that fresh five rounds of bidding took place on Thursday, after six rounds on the first day on Wednesday with bids worth Rs 60,000 crore.
"The bidding has taken place in all bands. At present, a value of approximately Rs 65,000 crore has been committed by bidders in respect of provisionally won spectrum. There is still spectrum, which is yet to be sold. Bidding would recommence tomorrow," the Department of Telecom (DoT) said.
The government was expecting to raise over Rs 82,000 crore from the auction, but the final amount may go much higher if bids continue at such an aggressive pace.
Incumbents Bharti Airtel and Vodafone are locked with Reliance Jio to protect their spectrum they need to carry voice and data in the world's second-biggest smartphone market. In all, eight bidders are in fray.
The auction is the biggest ever sale of 2G and 3G airwaves where government is selling spectrum in four bands: 2,100 megahertz (Mhz), 1,800 MHz, 900 MHz and 800 MHz.
On the second day, operators continued aggressive bidding in 900 MHz band with price increment in seven circles whereas there was not much bidding in Mumbai, Delhi, Kolkata and Andhra Pradesh circles in the 2,100 MHz band.
Good bidding was also witnessed in 800 MHz and 1800 MHz bands. The government will not release results of the auction because of a court ruling.
Asian brokerage firm CLSA in a report said that in a surprise, large data markets of Delhi, Mumbai, Karnataka and Andhra Pradesh saw no price increase in 2100MHz band, despite only one block of available spectrum.
A total of 380.75 MHz of spectrum is on offer in the premium 900 MHz band, 1,800 MHz and 800 MHz while 5 MHz is up for bidding in the 2,100 MHz band across 17 out of 22 telecom areas or circles in the country.
Most of the spectrum put up for auction is presently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. Their licences are expiring in 2015-16.
Spectrum auction attracts Rs 65,000 cr bids on second day - Business Today
another News
Government Eyes Rs. 1 Lakh Crore From Spectrum Auction: 10 Facts
The biggest-ever auction of 2G and 3G spectrum started on Wednesday and is likely to fetch the government over Rs.82,000 crore based on the reserve price. But analysts have said that the government will get around Rs. 1 lakh crore from the sale of radiowaves used for mobile telephony.
Here is a 10-Point Cheat-Sheet
1) Most of the spectrum being put up for the auction is currently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. As many of their permits in different circles are expiring, it becomes mandatory for these companies to win spectrum if have to offer services. Analysts say this will lead to a fierce bidding war among telecom operators.
2) Mobile licences for Idea Cellular's 9 circles, Airtel's 6 circles and 7 circles each of Vodafone and Reliance Telecom are coming up for renewal. Overall 29 licences in 18 service areas will expire in 2015-16.
3) Eight companies are in the fray, including Reliance Jio, the telecom arm of Mukesh Ambani-led Reliance Industries.
4) Bharti Enterprises Chairman Sunil Mittal has indicated that the auction might put pressure on the financials of the telecom companies and this might lead to a rise in tariffs. "It (spectrum auction) puts pressure on balance sheets... may result in rise in tariff," Mr Mittal said. Bharti Airtel, the flagship company of Bharti group, is the biggest telecom operator of the country.
5) Successful bidders have to make an upfront payment of 25-33 per cent of the final sale price. This may help the government to garner nearly Rs. 25,000 crore immediately through the current round of spectrum auction.
6) Eight telecom operators have deposited a whopping Rs.20,435 crore as earnest money for the auction of radiowaves. Reliance Jio has paid the highest deposit of Rs.4,500 crore, followed by Rs. 4,336 crore from Bharti Airtel.
7) The government is selling 380.75 MHz of 2G spectrum in three bands - the premium 900 MHz band, 1800 MHz and 800 MHz. Also, 5 Mhz in the 2100 Mhz band, or 3G spectrum, has been put up for auction.
8) At the minimum or reserve price for 2G spectrum, the government will get Rs. 64,840 crore while the 3G spectrum will fetch at least Rs. 17,555 crore.
9) The Supreme Court had earlier allowed the government to go ahead with the spectrum auction subject to certain riders. Hearing a case against the government's auction conditions, the top court said the outcome of the telecom spectrum auction will be subject to its final ruling. The top court will hear the matter on March 26.
10) The government had raked in Rs. 62,162 crore from the last spectrum auction in February 2014. (With Agency Inputs)
Government Eyes Rs 1 Lakh Crore From Spectrum Auction: 10 Facts – NDTV Profit
A side report
Budget 2015: Government expects Rs 42,865.62 crore from spectrum auction
NEW DELHI: The government expects to earn Rs 42,865.62 crore from spectrum auctions and one-time spectrum charges, in the 2015-16 financial year, finance minister Arun Jaitley said while presenting the Union Budget on Saturday.
As per the budget estimates for 2015-16, the government's expectations of Rs 42,865.62 crore from receipts relating to one-time spectrum charges levied, auction of 2G airwaves in the 1800 MHz, 900 MHz spectrum and 800 MHz bands, are marginally lower than the Rs43,161.72 crore estimated for this fiscal year through March 31.
In 2013-14, the government had earned Rs 40,113.76 crore. Department of telecom collects recurring licence fees and spectrum usage charges from various telecom operators licensed by it.
The department is set to auction airwaves in various bands from March 4, 2015, from which the government expects to earn upwards of Rs 80,000 crore. Telcos are supposed to pay 25% and 33% of what they bid in the auctions to the government within 10 days of the day the auction gets concluded, depending on the band they win.
The telecom department (DoT) concluded spectrum auction for radiowaves in the 900 Mhz and 1800 Mhz bands in February 2014 that fetched the government Rs 61,162 crore, of which Rs 18,296.36 crore is supposed to have flown into the exchequer in the fiscal year ended March 31, 2014.
Meanwhile, In order to give impetus to local manufacturing of telecom products, the government has earmarked Rs 50 crore for reviving state-owned Indian Telephone Industries Ltd, manufacturer of telecommunications equipment in India.
The DoT's plan outlay for the 2015-16 financial year has been pegged at Rs 5,199.95 crore which includes Rs 520 crore for development of the North eastern region where the government wants to improve the flagging telecom connectivity. A sub-plan of Rs 13 crore for improving connectivity in sub-tribal areas has also been earmarked.
Additionally, Rs 2,400 crore has been set aside for improving rural and remote telephony under the Universal Service Obligation Fund, while Rs 260 crore would be used under the USOF for the Northeastern region. The government also intends to improve the telecommunications network for defence services with a planned outlay of Rs 2400 crore for the country and a separate Rs 250 crore for the Northeastern region.
Budget 2015: Government expects Rs 42,865.62 crore from spectrum auction - Economic Times
@sancho
You think the excess in gain from this auction is factored already as the cushion needed for unplanned expenses in the budget especially for defence acquisition as per priority based acquisition?
PTI New Delhi Last Updated: March 5, 2015 | 22:25 IST
The second day of the biggest ever telecom spectrum auction ended on Thursday with total bids growing to about Rs 65,000 crore, as the telecom operators bid aggressivelyacross all bands including those for 2G and 3G.
The auction will continue on Friday, despite it being a holiday on account of Holi festival.
Sources said that fresh five rounds of bidding took place on Thursday, after six rounds on the first day on Wednesday with bids worth Rs 60,000 crore.
"The bidding has taken place in all bands. At present, a value of approximately Rs 65,000 crore has been committed by bidders in respect of provisionally won spectrum. There is still spectrum, which is yet to be sold. Bidding would recommence tomorrow," the Department of Telecom (DoT) said.
The government was expecting to raise over Rs 82,000 crore from the auction, but the final amount may go much higher if bids continue at such an aggressive pace.
Incumbents Bharti Airtel and Vodafone are locked with Reliance Jio to protect their spectrum they need to carry voice and data in the world's second-biggest smartphone market. In all, eight bidders are in fray.
The auction is the biggest ever sale of 2G and 3G airwaves where government is selling spectrum in four bands: 2,100 megahertz (Mhz), 1,800 MHz, 900 MHz and 800 MHz.
On the second day, operators continued aggressive bidding in 900 MHz band with price increment in seven circles whereas there was not much bidding in Mumbai, Delhi, Kolkata and Andhra Pradesh circles in the 2,100 MHz band.
Good bidding was also witnessed in 800 MHz and 1800 MHz bands. The government will not release results of the auction because of a court ruling.
Asian brokerage firm CLSA in a report said that in a surprise, large data markets of Delhi, Mumbai, Karnataka and Andhra Pradesh saw no price increase in 2100MHz band, despite only one block of available spectrum.
A total of 380.75 MHz of spectrum is on offer in the premium 900 MHz band, 1,800 MHz and 800 MHz while 5 MHz is up for bidding in the 2,100 MHz band across 17 out of 22 telecom areas or circles in the country.
Most of the spectrum put up for auction is presently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. Their licences are expiring in 2015-16.
Spectrum auction attracts Rs 65,000 cr bids on second day - Business Today
another News
Government Eyes Rs. 1 Lakh Crore From Spectrum Auction: 10 Facts
The biggest-ever auction of 2G and 3G spectrum started on Wednesday and is likely to fetch the government over Rs.82,000 crore based on the reserve price. But analysts have said that the government will get around Rs. 1 lakh crore from the sale of radiowaves used for mobile telephony.
Here is a 10-Point Cheat-Sheet
1) Most of the spectrum being put up for the auction is currently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. As many of their permits in different circles are expiring, it becomes mandatory for these companies to win spectrum if have to offer services. Analysts say this will lead to a fierce bidding war among telecom operators.
2) Mobile licences for Idea Cellular's 9 circles, Airtel's 6 circles and 7 circles each of Vodafone and Reliance Telecom are coming up for renewal. Overall 29 licences in 18 service areas will expire in 2015-16.
3) Eight companies are in the fray, including Reliance Jio, the telecom arm of Mukesh Ambani-led Reliance Industries.
4) Bharti Enterprises Chairman Sunil Mittal has indicated that the auction might put pressure on the financials of the telecom companies and this might lead to a rise in tariffs. "It (spectrum auction) puts pressure on balance sheets... may result in rise in tariff," Mr Mittal said. Bharti Airtel, the flagship company of Bharti group, is the biggest telecom operator of the country.
5) Successful bidders have to make an upfront payment of 25-33 per cent of the final sale price. This may help the government to garner nearly Rs. 25,000 crore immediately through the current round of spectrum auction.
6) Eight telecom operators have deposited a whopping Rs.20,435 crore as earnest money for the auction of radiowaves. Reliance Jio has paid the highest deposit of Rs.4,500 crore, followed by Rs. 4,336 crore from Bharti Airtel.
7) The government is selling 380.75 MHz of 2G spectrum in three bands - the premium 900 MHz band, 1800 MHz and 800 MHz. Also, 5 Mhz in the 2100 Mhz band, or 3G spectrum, has been put up for auction.
8) At the minimum or reserve price for 2G spectrum, the government will get Rs. 64,840 crore while the 3G spectrum will fetch at least Rs. 17,555 crore.
9) The Supreme Court had earlier allowed the government to go ahead with the spectrum auction subject to certain riders. Hearing a case against the government's auction conditions, the top court said the outcome of the telecom spectrum auction will be subject to its final ruling. The top court will hear the matter on March 26.
10) The government had raked in Rs. 62,162 crore from the last spectrum auction in February 2014. (With Agency Inputs)
Government Eyes Rs 1 Lakh Crore From Spectrum Auction: 10 Facts – NDTV Profit
A side report
Budget 2015: Government expects Rs 42,865.62 crore from spectrum auction
NEW DELHI: The government expects to earn Rs 42,865.62 crore from spectrum auctions and one-time spectrum charges, in the 2015-16 financial year, finance minister Arun Jaitley said while presenting the Union Budget on Saturday.
As per the budget estimates for 2015-16, the government's expectations of Rs 42,865.62 crore from receipts relating to one-time spectrum charges levied, auction of 2G airwaves in the 1800 MHz, 900 MHz spectrum and 800 MHz bands, are marginally lower than the Rs43,161.72 crore estimated for this fiscal year through March 31.
In 2013-14, the government had earned Rs 40,113.76 crore. Department of telecom collects recurring licence fees and spectrum usage charges from various telecom operators licensed by it.
The department is set to auction airwaves in various bands from March 4, 2015, from which the government expects to earn upwards of Rs 80,000 crore. Telcos are supposed to pay 25% and 33% of what they bid in the auctions to the government within 10 days of the day the auction gets concluded, depending on the band they win.
The telecom department (DoT) concluded spectrum auction for radiowaves in the 900 Mhz and 1800 Mhz bands in February 2014 that fetched the government Rs 61,162 crore, of which Rs 18,296.36 crore is supposed to have flown into the exchequer in the fiscal year ended March 31, 2014.
Meanwhile, In order to give impetus to local manufacturing of telecom products, the government has earmarked Rs 50 crore for reviving state-owned Indian Telephone Industries Ltd, manufacturer of telecommunications equipment in India.
The DoT's plan outlay for the 2015-16 financial year has been pegged at Rs 5,199.95 crore which includes Rs 520 crore for development of the North eastern region where the government wants to improve the flagging telecom connectivity. A sub-plan of Rs 13 crore for improving connectivity in sub-tribal areas has also been earmarked.
Additionally, Rs 2,400 crore has been set aside for improving rural and remote telephony under the Universal Service Obligation Fund, while Rs 260 crore would be used under the USOF for the Northeastern region. The government also intends to improve the telecommunications network for defence services with a planned outlay of Rs 2400 crore for the country and a separate Rs 250 crore for the Northeastern region.
Budget 2015: Government expects Rs 42,865.62 crore from spectrum auction - Economic Times
@sancho
You think the excess in gain from this auction is factored already as the cushion needed for unplanned expenses in the budget especially for defence acquisition as per priority based acquisition?
