News
Government raises 8.8 billion as operators give 700-MHz, 900-MHz frequencies a wide berth.
India’s biggest ever spectrum sale concluded this week, falling well below expectations.
The government had set a target of raising a minimum of 5.44 trillion rupees (€71 billion) from the process, but according to provisional results published by the Department of Telecommunications (DoT) on Thursday, the sum raised was INR657.9 billion (€8.8 billion).
Around 2,200 MHz of spectrum was up for grabs, spanning the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.3 GHz and 2.5 GHz bands.
According to various local news reports, more than half the available frequencies went unsold.
Indeed, the DoT’s results show that the 700 MHz and 900 MHz bands received no bids whatsoever.
Vodafone spent the most – INR202.8 billion (€2.7 billion) – picking up spectrum in the 1800 MHz, 2.1 GHz, and 2.5 GHz bands.
"The new spectrum significantly enhances the coverage, capacity and speed of Vodafone India’s 4G data services in its key [telecom] circles, complementing existing high-quality 2G and 3G voice and data capabilities," said Vodafone India, in a statement.
Market leader Bharti Airtel won 173.8 MHz of spectrum across the 1800 MHz, 2.1 GHz, and 2.3 GHz bands, spending INR142.4 billion.
"Airtel has further strengthened its pan-India spectrum portfolio and secured its spectrum requirements for the next 20 years. The company now has 4G and 3G spectrum in all circles, giving it the widest mobile broadband footprint across the country," the operator said.
Market newcomer Reliance Jio Infocomm (RJIL) also spent a considerable sum – INR136.7 billion – acquiring 269 MHz of spectrum in the 800 MHz, 1800 MHz and 2.3 GHz bands.
"We have expanded our spectrum footprint thereby significantly enhancing capacity of our all-IP data strong network and ensuring world-class services for all Indians," said Mukesh Ambani, chairman of Jio parent Reliance Industries.
Meanwhile, Idea Cellular was the fourth-biggest bidder, splashing INR128 billion on 349.2 MHz of spectrum spread across the 1800 MHz, 2.1 GHz, 2.3 GHz and 2.5 GHz bands.
"Idea has filled all of its spectrum coverage requirements, while procuring a substantial part of its broadband capacity needs for the next decade. The company will now focus on expanding its wireless broadband presence primarily on 4G LTE technology to over a billion Indians while offering world class high speed digital customer experience like never before," said Idea chairman Kumar Mangalam Birla.
In addition, Tata Teleservices successfully renewed its 1800-MHz licences in Mumbai and Maharashtra with bids totalling INR40.4 billion.
Reliance Communications and Aircel accounted for the remaining INR7.6 billion, with each operator winning spectrum in the 1800 MHz band.
