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The auctions for the 5G spectrum are expected to intensify as all participants have submitted their Earnest Money Deposit (EMD). For the same, Reliance Jio has submitted a staggering amount of Rs 14,000 crores.
All four participants in the auctions have submitted a total of Rs 21,800 crores, according to data given by the Department of Telecommunications. Reliance gave Rs 14,000 crores followed by Airtel at Rs 5,500 crores and Vodafone with Rs 2,200 crores. Adani Data Network submitted the lowest EMD at Rs 100 crores.
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This could be an indication that Adani does not feel like bidding fiercely in the upcoming auctions, to the relief of all auction participants. The EMDs submitted by the companies give companies eligibility points depending on which they can bet on the spectrum. It can also be an indicator of the participants' appetite, strategy, and plans.
The four bidders can apply for a maximum of the following amounts (though they may choose to bid for lower): Reliance with 159,830 points can bid for spectrum worth Rs 1.27 lakh crores; Airtel with 66,330 points is eligible for Rs 48,000 crores worth of spectrum; Vodafone at 29,370 points will be allowed to bid up to the spectrum of Rs 20,000 crores. Adani, with 1,650 points only, is eligible only for Rs 700 crores worth of spectrum.
The auction of the 5G airwaves is scheduled to start on 26th July. A total of 72 GHz spectrum, worth almost Rs 4.3 lakh crores will be up for auction this time. The auction will be held for radio waves in several low-frequency bands (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz), and high-frequency bands (26GHz).
The government is expected to garner Rs 80k-100k crores as revenue from the sale of the spectrum, which supports wireless internet access at significantly higher speeds than the current 4G communications standard.
Article by Aman Agarwal.
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