5G spectrum auction: What Airtel, Vodafone-Idea and Reliance Jio may fight for

All the three private telecom operators -– Reliance Jio , Bharti Airtel and Vodafone Idea (Vi) - will reportedly fight it out to get a piece of 5G spectrum worth Rs 96,317.65 crore. According to a report in Economic Times, quoting telecom department officials, spectrum auctions are scheduled for the next auction, and will start on June 6.

The auction was earlier scheduled to start on May 20, but the date was extended in the wake of general elections.

The telecom department has reportedly received three applications for the auction - from India’s three private telcos - by the deadline for applying. This time industry experts and analysts expect the upcoming spectrum sale to be a muted affair as India’s top telcos have adequate 5G airwaves for their current needs. No other company too is said to have applied for spectrum this time, other than the three telcos. In the last auction held in June 2022, an Adani group company was the surprise bidder.

What spectrum bands are on auction
The auction will offer airwaves across eight key bands: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.

What Airtel, Vodafone-Idea and Reliance Jio may bid for
Experts predict selective buying from Bharti Airtel and Vodafone Idea (Vi), who primarily need to renew their existing licenses in specific circles. Airtel requires spectrum renewal in J&K, Odisha, Bihar, UP (East), West Bengal, and Assam. Similarly, Vi needs renewals in West Bengal and UP West circles. Estimates suggest Airtel and Vi might only bid for renewals worth around Rs 4,200 crore and Rs 1,950 crore respectively, whereas Reliance Jio doesn't have any pressing renewal needs this year.

Key Auction Details: Dates and more
* The spectrum licenses will be valid for 20 years with payments spread across 20 annual installments.

* Successful bidders can choose to surrender the spectrum after a minimum of 10 years.

* Financial bank guarantees and performance bank guarantees are not mandatory for participation.

* The auctioned airwaves will be exempt from Spectrum Usage Charges (SUC) as per the recent telecom reforms.

* DoT will publish applicant details by May 10.

The deadline for application withdrawal is May 17, with the final bidder list expected on May 20. Successful bidders must deposit the amount within 10 days of receiving a demand notice from DoT. DoT will then issue a frequency assignment letter within 30 days of receiving the payment.