5G Spectrum Base Price Increased by 9-12% for May 20 Auction

The government has raised the pan-India base prices for the upcoming 5G airwaves auction across the 3.3 GHz, 26 GHz, and 1,800 MHz bands by 9-12% per unit compared to the previous sale nearly two years ago, according to analysts. The auction, slated to commence on May 20, is the country’s second for 5G spectrum. Notably, there is no anticipation of a bidding war among the top telecom operators in the sub-GHz bands, as the government has excluded the coveted 600/700 MHz airwaves from this round. Post the increase, the base or reserve prices stand at Rs 355 crore (12% rise) per unit for the 3.3 GHz band, Rs 7.6 crore (9% increase) per unit for the 26 GHz band, and Rs 2,337 crore (10.4% surge) per unit for the 1,800 MHz band. 

While Reliance Jio and Bharti Airtel possess sufficient airwave holdings and have nearly completed their nationwide 5G rollouts, cash-strapped Vodafone Idea (Vi) is yet to finalize its pending fundraise. The total 10.5 GHz of airwaves on offer in this auction is seven times lower than the quantum auctioned in the previous 5G sale of July 2022, where the government had offered over 72 GHz of airwaves across ten 5G bands. This time, airwaves in eight 5G bands are up for sale: 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands. 

ICICI Securities highlighted that spectrum reserve prices have increased in the 3,300 MHz and 26 GHz bands, with a significant rise in the reserve price of the 1,800 MHz band, particularly in the UP-East circle, which saw a 102% hike (at Rs 184 crore) due to aggressive bidding in the previous auction. Analysis of the notice inviting application (NIA) issued by the Department of Telecommunications (DOT) on March 8 reveals that base prices have risen by 12% in the 2,100 MHz band in only three circles – Delhi, Gujarat, and Karnataka – while remaining unchanged in others. However, there is no change in the pan-India reserve pricing of 5G airwaves in the 2,300 MHz band at Rs 443 crore per unit. 

The brokerage also noted that reserve prices in the 900 MHz band have been increased only in Assam, Northeast, and J&K by 12-14%, while they remain unchanged in other circles. In the 800 MHz band, the reserve price has only been increased in J&K. Industry experts anticipate Bharti Airtel to bid for more 5G spectrum bands in the upcoming auction to enhance its ongoing rural mobile broadband coverage expansion, alongside airwaves where it faces renewals. Morgan Stanley, in a note, highlighted the potential for Airtel to bid for other circles/bands, citing its strategy to focus on rural rollouts, which could result in a higher amount than the projected Rs 5,100 crore incremental spectrum liability for the telco in FY25. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Iraq in Talks with Foreign Companies for 5G Network Launch, One Year Post-Approval
5G/6G

Iraq in Talks with Foreign Companies for 5G Network Launch, One Year Post-Approval

The Iraqi government is reportedly in discussions with foreign companies to operate the country’s forthcoming 5G network, a year after the Iraqi Ministry of Communications approved the 5G plan.  According to a report by Iraqi News, Communications Minister Hiyam Al-Yasiri stated that talks are progressing following the cabinet’s approval of a task force, chaired by […]

Read More
BSNL Successfully Trials Indigenous 5G Technology, Launch Set for Early 2025!
5G/6G

BSNL Successfully Trials Indigenous 5G Technology, Launch Set for Early 2025!

BSNL’s Breakthrough in Indigenous 5G Technology: A Milestone for Indian Telecom  Bharat Sanchar Nigam Limited (BSNL) has marked a significant milestone by successfully testing its locally developed 5G technology on the 3.6 GHz and 700 MHz bands. This achievement underscores India’s commitment to self-reliance in telecommunications as BSNL gears up for a full 5G launch […]

Read More
Bharat 6G Alliance Pushes for Extension of PLI Scheme Until 2030
5G/6G

Bharat 6G Alliance Pushes for Extension of PLI Scheme Until 2030

The working group on device technology, sensors, and manufacturing systems, part of the Bharat 6G Alliance, has proposed extending the production-linked incentive (PLI) scheme for mobile devices until 2030. It also recommended maintaining the policy of discouraging imported phones through the end of the decade, a key strategy to boost local 6G device manufacturing.  The […]

Read More