India’s spectrum auction has raised 650 billion rupees (€9.4 billion) and counting after two days of bidding, largely due to intense demand for 900-MHz frequencies.
The government’s press office confirmed the figure in a statement on Thursday and said that the auction would begin again with round 12 on Friday morning.
"Bidding has taken place in all bands…There is still spectrum which is yet to be sold," the government said.
A detailed report from the Department of Telecommunications (DoT) shows that demand for 900 MHz is far outstripping supply in seven of the 17 circles in which the frequency band is up for grabs, including Bihar, Ker ala and Rajasthan.
The 900 MHz band will account for the lion’s share of the INR800 billion-plus the government aims to raise from the auction. Bidding in the 800 MHz and 1800 MHz bands has been less frenetic, with a number of circles failing to any attract interest.
The controversial sale of just 5 MHz of spectrum in the 2.1 GHz band is progressing slowly. Most circles, including Delhi and Mumbai, have failed to draw any bids. The fact that the state will sell a further 15 MHz of 2.1 GHz frequencies at a later date might account for the lack of interest.
Meanwhile, the lower band spectrum is in greater demand because much of it is already in the hands of India’s biggest telcos – Bharti Airtel, Vodafone, Idea Cellular and Reliance Communications – which are bidding to renew licences that expire this year and next.
The telcos face competition from Reliance Jio Infocomm, which is seeking to enter India’s mobile market this year. The firm already holds spectrum in the 1800 MHz and 2.3 GHz bands and will likely bid aggressively in this competition. It spent the largest amount of all the auction participants on deposits last month, and these are directly linked to the amount of spectrum a company is eligible to bid for.
The state will not publish details of the individual bidders until the close of the auction.
Aircel, Uninor and Tata Teleservices are also taking part in the process.
