Bharti Airtel Wins Big in Spectrum Auction, Purchases 60% of Offered Waves

Telecom giant Sunil Bharti Mittal's Airtel emerged as the top bidder in the recent spectrum auction, securing around 60% of the Rs 11,341 crore worth of radio waves sold. Airtel acquired airwaves worth Rs 6,856.76 crore, while Reliance Jio, led by Mukesh Ambani, obtained spectrum valued at Rs 973.62 crore. Vodafone Idea secured spectrum worth Rs 3,510.4 crore.

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The government offered a total of 10 GHz of spectrum ranging from 800 MHz to 26 GHz, valued at Rs 96,238 crore at the base price. However, only a small portion was sold in seven auction rounds. In total, 141.4 MHz of radio waves were sold for Rs 11,340.78 crore.

Spectrum Auction Results

Bharti Airtel and Vodafone Idea successfully renewed their expired spectrum in the 900 MHz and 1,800 MHz bands. Additionally, telcos acquired an extra 87.2 MHz worth Rs 6,164.88 crore to enhance their services. The auction was part of an ongoing allocation process that is transparent and progressive.

Communications Minister Jyotiraditya Scindia stated that telecom service providers have taken spectrum not only for continuity but also for expanding their services. He added, "We will continue the process with the clear objective of ensuring reliability and growth of telecom services in India."

The bidding exceeded the reserve price in West Bengal and Bihar for the 1,800 MHz band. Despite this, the total realisation from the auction was just about 12% of the government's estimated Rs 96,238 crore minimum value for the spectrum on offer.

Telcos' Spectrum Acquisition

Bharti Airtel emerged as the top bidder by purchasing 97 MHz of radio frequency for mobile services for Rs 6,856.76 crore. Vodafone Idea bought 30 MHz of spectrum for Rs 3,510.4 crore, while Reliance Jio Infocomm acquired 14.4 MHz for Rs 973.62 crore.

A statement noted that Bharti Airtel Limited, Reliance Jio Infocomm Limited and Vodafone Idea Limited have successfully bid and taken spectrum for growth and continuity of services. The response to the auction was influenced by most of the 5G spectrum being sold in August 2022 and its monetisation still ongoing.

No bids were placed in the 800 MHz, 2,300 MHz, 3,300 MHz and 26 GHz bands due to recent auctions and ongoing monetisation of these bands. A total of 141.4 MHz (26.5%) was sold from the remaining 533.6 MHz spectrum available.

Future Auctions

The unsold spectrum will be put up for auction again next time. Available spectrum in various bands including 800 MHz, 900 MHz, and others were offered in this auction.

Gopal Vittal, MD and CEO of Bharti Airtel said: "In this auction, we have bolstered our sub-giga hertz and mid-band holding which will significantly improve our coverage especially indoor."

A statement from Jio highlighted that it has consolidated its leadership position by acquiring spectrum in Bihar and West Bengal's 1,800 MHz band.

Company Statements

Akash M Ambani, Chairman of Reliance Jio Infocomm said: "This new spectrum acquisition will continue to enable us serving aspirations of the new India... superior customer experience."

Akshaya Moondra, CEO of Vodafone Idea stated: "This acquisition will enable us to effectively use dedicated sub GHz spectrum towards advanced technologies to enhance the experience we offer to our customers."

The recent auction results reflect a strategic approach by telecom companies to secure necessary spectrum while ensuring service continuity and expansion.