Jio, Airtel, Adani pour Rs 1.45 lakh crore bids for 5G spectrum on Day 1
New Delhi, Jul 26: Firms run by tycoons Mukesh Ambani, Sunil Bharti Mittal and Gautam Adani bid about Rs 1.45 lakh crore to buy fifth-generation (5G) airwaves on the opening day of India's largest-ever spectrum auction on Tuesday.
Telecom Minister Ashwini Vaishnaw said the response on the first day of the auction exceeded all expectations and will surpass the records of 2015, when revenue collection from auction stood at Rs 1.09 lakh crore.
Even the 700 MHz band, which had not seen any takers in the 2016 and 2021 auctions, received bids this time. As per information put out by the telecom department, in the coveted 700 MHz band, provisional bids worth Rs 39,270 crore were received on day-one of auction, industry watchers said.
All four applicants -- Ambani's Reliance Jio, Mittal's Bharti Airtel, Vodafone Idea and an Adani group firm "actively" participated in the auction of the 5G spectrum, which offers ultra-high speeds (about 10 times faster than 4G), lag-free connectivity, and can enable billions of connected devices to share data in real-time.
As per the process, it will not be known until the close which company got how much of airwaves. All the radiowaves sold on day one were at the reserve price.
Describing the participation by four bidders as 'strong', the minister said bids worth Rs 1.45 lakh crore came in on day one. The auction saw healthy participation, he said, adding the response shows that the industry has turned from its difficult time caused by litigation.
"Now industry is getting converted to sunrise industry...Bids of about Rs 1,45,000 crore show that the industry is moving towards positive territory, now new investments will come, service quality will improve, and new technology will be introduced," the minister said.
The bidding and demand seen on the first day is over 80 per cent more than government's internal estimates of Rs 80,000 crore. The minister acknowledged that response had gone "far beyond our expectations". He added that going by the current participation levels, auctions would surpass the budgeted provisions.
The government, he said, will allocate the spectrum in record time and 5G services are expected to start rolling out by September-October timeframe. The target is to allocate the spectrum by August 14-15, he said.
Four rounds of bidding were held on the opening day, with mid and high-end bands seeing keen interest. Bids were received for 7 out of 9 bands with more than half of the total bids (in value terms) coming in from 3,300 megahertz band - which is for 5G communications. As much as Rs 78,550 crore worth of bids were made for spectrum in the 3,300 MHz band, market experts analysing DoT data said.
The 700 MHz band, which is being widely used by the telcos in the West for a cost-efficient deployment, received Rs 39,270 crore worth of provisional bids while millimetre wave band 26 GHz, which allows for ultra-high-speed mobile broadband services, was the third most sought after band with bids worth Rs 14,632.50 crore.
No bids were received for 800 MHz and 2,300 MHz bands.
In addition to powering ultra-low latency connections, which allow downloading full-length high-quality video or movie to a mobile device in a matter of seconds (even in crowded areas), fifth generation or 5G would enable solutions such as e-health, connected vehicles, more immersive augmented reality and metaverse experiences, life-saving use cases, and advanced mobile cloud gaming, among others.
In all the auction is being held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz), mid (3,300 MHz) and high (26 GHz) frequency bands.
A total of 72 GHz (gigahertz) of radiowaves worth at least Rs 4.3 lakh crore is up for bidding.
The auction will continue on Wednesday, and is likely to conclude tomorrow itself.
Asked how much will the bids go beyond Rs 1.45 lakh crore levels seen on day one, the minister said, "It looks like it will be at that level, but nothing can be said till the auction is ongoing".
The minister assured that consumers will be able to experience 5G services in many cities by 2022-end.
"Spectrum is basic raw material for telecom. Good spectrum can improve telecom services. In coming months and years, quality of service will improve significantly," Vaishnaw said, adding India's indigenous 5G stack too will be ready in a few months.
Prashant Singhal, EY Global TMT Emerging Markets Leader, said the first day of spectrum auction was in line with the expectations, particularly when it came to 3,300 MHz and 26 GHz bands.
"It clearly highlights that coveted 5G spectrum is much in demand. Bidding in the 700 MHz band was surprising considering the spectrum price. However, it is reflective of the need to provide pan-India coverage for 5G, especially in the rural areas," Singhal said.
There is no excess demand in any of the bands, Singhal said, adding if the trend continued, the bidding is expected to be over as soon as 100 per cent activity is reached.
"The auction is likely to witness higher than market estimates," he added.
In the auction conducted in 2021 - that had lasted two days - Reliance Jio had picked up spectrum worth Rs 57,122.65 crore, Bharti Airtel bid about Rs 18,699 crore, and Vodafone Idea bought spectrum worth Rs 1,993.40 crore.
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India vs Australia,1st Test: KL Rahul's controversial dismissal sparks outrage
Perth: Team India batter KL Rahul's dismissal during the first Test of the Border-Gavaskar Trophy in Perth on Friday has ignited a wave of frustration and debate among fans and pundits alike.
The controversy unfolded when Rahul, who was looking in decent touch, was dismissed for 26 following a review by the third umpire. Facing Mitchell Starc, Rahul moved forward to defend a delivery that angled across him. The ball passed closely to the bat and was caught by wicketkeeper Alex Carey. Initially, the on-field umpire ruled it not out, but Australia opted for a review, claiming a faint edge.
The review showed a spike on the Snicko, suggesting contact with the bat as the ball passed. However, the crucial front-on replay, which could have confirmed whether the sound came from the bat or the bat-pad contact, was inconclusive. Despite the ambiguity, the third umpire overturned the on-field not-out decision, citing the Snicko spike as sufficient evidence of an edge.
The Karnataka batter, visibly upset, flashed a wry smile before delivering a mouthful.
The dismissal sparked widespread outrage on social media, with fans calling the decision a "joke" and criticising the reliance on incomplete evidence. Many argued that the absence of a clear front-on angle should have led to the benefit of the doubt being given to the batter.
Former Indian cricketer Wasim Jaffer took to social media, questioning the use of technology and the third umpire’s decision. "Third umpire asked for another angle which wasn't provided. I'd assume he'd only ask for another angle if he wasn't sure. Then if he wasn't sure, why did he overturn the on field not out call? Poor use of technology and proper protocol not followed. KL hard done by," Jaffer wrote on X.
Former Australian batter Matthew Hayden also weighed in, expressing doubts over the Snicko reading. “His pad and bat are not together at that point in time as the ball passes. It's (bat hitting pad) after, in fact, the ball passes the edge. Does Snicko pick up the sound of the bat hitting the pad? We're assuming (Snicko) may be the outside edge of the bat but that may not be the case," Hayden said on 7Cricket.
Cricket commentator Harsha Bhogle also criticised the decision, urging a more careful review process, especially when overturning the on-field umpire's call. He noted that there is no need to rush a decision when there are so many angles to review.
Meanwhile, Australian pacers dominated the Indian batting lineup as India were bowled out for 150 on Day 1 of the first Test.
"His pad and bat are not together at that point in time as the ball passes.
— 7Cricket (@7Cricket) November 22, 2024
"It's (bat hitting pad) after, in fact, the ball passes the edge. Does Snicko pick up the sound of the bat hitting the pad?
"We're assuming (Snicko) may be the outside edge of the bat but that may not… pic.twitter.com/hvG0AF9rdo
