Guwahati: The biggest telecom auction in the nation's history came to a close with leading telecom companies purchasing spectrum across frequency bands, including 5G, for more than Rs 1.45 trillion. The 700 MHz spectrum, which is highly prized and expensive, was also chosen by telecom companies.

Most of the bids were set at the basic price. Adani Group, Vodafone, Idea, Reliance Jio, and Bharti Airtel are competing for 5G spectrum, which will enable them to provide broadband at a speed 10 times faster than 4G.

Ashwini Vaishnaw, the minister of communications, described the bidding as "dynamic" and the participation as "strong." In excess of predictions, he informed reporters, more than Rs 1.45 trillion worth of spectrum has been purchased on the first day of the auction.

Based on the telecom companies' earnest money deposits with the government, the spectrum they proviso acquired on the first day accounts for 73% of their war chest, or Rs 1.96 trillion.

On Tuesday, there were four rounds of bidding. The majority of telecom companies anticipate the auction to end on Wednesday.

The surprise was that one telecom provider—Reliance Jio, according to analysts—provisionally won 10 MHz in the 700-MHz spectrum across the nation in 22 circles. This is based on Jio's earnest money deposit and war chest. It must pay Rs. 39,270 crore for this.

Analysts claim that the 700 MHz band spectrum would provide the business an advantage over its rivals and is widely regarded as essential for coverage with other bands for 5G.

Due to the high base price, which was 40% lower this time, the band had not been purchased in the previous two auctions.

The 3.5 GHz and millimetre bands for 5G both found buyers, but there is still enough spectrum available. The spectrum awarded to telecom companies in this band is worth Rs 78,550 crore, again at the base price, or 75% of what it would be worth if the entire spectrum were sold, which would be worth Rs 1.04 trillion.

In the millimetre band, where 2,850 MHz was offered in every circle once again, telecoms paid about Rs. 14,632 crore, or about 73% of what the government would have received if all of the available spectrum had been sold (Rs 19,950 crore).

Due to a lack of interest in the 600 MHz, 800-MHz, 900 MHz (except in J&K and Assam), and 2,300 MHz bands, the auction was only focused on 5G spectrum. Seven circles in the 1800 MHz band, two circles in the 2100 MHz band, and one circle in the 250 MHz band all saw involvement.

Leading telecom firms paid more than Rs 1.45 trillion to purchase spectrum across frequency bands, including 5G, in the largest telecom auction in the country's history. Telecom corporations also made the highly coveted and pricey 700 MHz spectrum their choice.

The majority of the bids were at the starting price. For 5G spectrum, which would allow them to deliver broadband at a speed that is 10 times faster than 4G, Adani Group, Vodafone Idea, Reliance Jio, and Bharti Airtel are in competition with one another.

Communications Minister Ashwini Vaishnaw called the auction "dynamic" and the participation "strong." He told reporters that more over Rs 1.45 trillion worth of spectrum has been bought on the first day of the auction, surpassing expectations.

The spectrum the telecom firms reportedly obtained on the first day accounted for 73% of their war fund, or Rs 1.96 trillion, according to the earnest money deposits they made with the government.

There were four rounds of bidding on Tuesday. Most telecom businesses believe the auction will conclude on Wednesday.

One telecom company—Reliance Jio, according to analysts—provisionally won 10 MHz of the 700-MHz spectrum across the country in 22 circles, which was a surprise. This is based on Jio's war chest and earnest money deposit. For this, it must pay Rs. 39,270 crore.

According to analysts, the 700 MHz band spectrum would provide the company a competitive edge over its rivals and is largely viewed as necessary for 5G coverage alongside other bands. The band had not been bought in the first two auctions due to the high base price, which was 40% reduced this time.

Despite finding buyers, the 3.5 GHz and millimetre bands for 5G still have ample spectrum. The spectrum allocated to telecom firms in this band is worth Rs 78,550 crore, again at the base price, which is 75% of what the spectrum as a whole would be worth, which is Rs 1.04 trillion.

Telecoms spent nearly Rs. 14,632 crore, or roughly 73 percent of what the government would have gotten if all of the available spectrum had been sold, in the millimetre band, where 2,850 MHz was once again offered in every circle (Rs 19,950 crore).

The auction only concentrated on 5G spectrum due to a lack of interest in the 600 MHz, 800-MHz, 900 MHz (save in J&K and Assam), and 2,300 MHz bands. There was activity in one circle in the 250 MHz band, two circles in the 2100 MHz band, and seven circles in the 1800 MHz band.

Analysts assert that Jio and Bharti appear to have battled for 100 MHz in the 3.5 GHz spectrum and 50 MHz for Vodafone Idea, with the exclusion of C circles like Assam, Jammu & Kashmir, the Northeast, and Odisha.

Simply because there is an unsold spectrum in all bands and circles, it is realistic to anticipate that the auction will end at the base price.
The basic price of Rs 4.3 trillion meant that a significant portion of the 72 GHz of spectrum that the government auctioned would go unsold.

The data, however, has changed the dynamic and are far higher than what the government officials had predicted due to the unexpected purchase in the 700 MHz band.