On the eve of its next 5G spectrum auction, India’s Department of Telecommunications (DoT) has once again postponed the auction, now rescheduled for June 25.
Initially set for May 20, the auction was first delayed to June 6 to follow the country’s general elections, the results of which were announced today. However, the DoT amended its Notice Inviting Applications (NIA) on Tuesday, pushing the mock auctions to June 13 and 14, with the actual auction now set for June 25. No reason was given for the latest delay.
The auction will offer spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands, worth a potential INR963.1 billion (US$11.3 billion). Despite applications from private telcos Reliance Jio, Bharti Airtel, and Vodafone Idea, industry analysts are not expecting significant spending. Earnest money deposits (EMDs) from the telcos are the lowest since 2014, and up to 86% lower than the 5G auction in 2022, the report noted.
One reason is the low uptake of 5G services, despite Jio and Airtel completing their initial rollouts. They currently have enough 5G spectrum to meet immediate market demand. Similarly, Vodafone Idea has just begun its 5G rollout, with plans to offer services later this year.
Some analysts suggest that Airtel and Vodafone are likely to focus on acquiring spectrum bands with upcoming licence renewals. Jio, on the other hand, has no immediate renewals pending and might choose not to bid at all, according to the report.
