Bidding in lucrative 900 Mhz band halts

The battle for 900 Mhz spectrum, which was till last week very intense, mellowed down as bidding for three circles–Delhi, Mumbai and Kolkata—halted towards the end of round 44 as telcos are most   likely to have exhausted their eligibility points.

NEW DELHI :  The government has received bids worth about 581.51 bln rupees for 1,800 Mhz and 900 Mhz band at the end of the seventh day of spectrum auction, an industry official involved in conducting the auction told Cogencis.

Bidding in lucrative 900 Mhz band halts

The battle for lucrative 900 Mhz spectrum, which was till last week very intense, mellowed down today as bidding for three circles–Delhi, Mumbai and Kolkata—halted towards the end of round 44, the official said.

Companies are most likely to have exhausted their eligibility points to bid for more spectrum in the 900 Mhz band, the official added.

“So I presume that no further bidding will happen in 900 (Mhz) as even their eligibility to bid there would have been exhausted,” the official said. “I think it (eligibility points) might have been exhausted unless someone decides to shift from Delhi-1,800 to 900 in a major way,” the official added.

For the spectrum auction underway now, telecom companies have been granted specific eligibility points, taking into account the earnest money deposit they have made for specific circles that they want to bid for.

For the entire 900 Mhz spectrum put on block, the total provisional bids received were about 235.9 bln rupees, while for spectrum in 1,800 Mhz band, bids received were around 345.6 bln rupees, the official said.

By the end of the day, 49 rounds of bidding were completed and the next round is scheduled to commence Tuesday morning. For 900 Mhz band, Delhi circle was the only one that saw appreciation in provisional bid price from Saturday. The bids for Delhi circle at the end of the day’s bidding stood at 7.41 bln rupees per Mhz.

For the other lucrative 900 Mhz band metro circle, Mumbai, there was no change in the provisional bid price at the end of the seventh day. Today, the provisional bid price for all of spectrum on block for Mumbai 900 Mhz was about 90 bln rupees, unchanged from Saturday.

In the 1,800 Mhz band, excess demand for spectrum was seen in Assam, Maharashtra and Madhya Pradesh circle at the end of the last round of bidding.

The government has put on block 385.2 Mhz of pan-India spectrum in the 1,800 Mhz band and 46 Mhz of spectrum in Delhi, Mumbai and Kolkata circles for 900 Mhz band.  Of the total bids, according to the Notice Inviting Application, telecom companies are required to pay 33% upfront payment for 1,800 Mhz spectrum and 25% in case of 900 Mhz spectrum.   -Cogencis

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in