While this is lower than what the government had garnered last year, this is higher than most analysts‘ expectations of Rs 30,000-40,000 crore.
While aggressive bidding continues for 1800 MHz spectrum for Mumbai and east Uttar Pradesh circles, the premium segments - 700 and 900 MHz- are yet to find any takers.
Telecom operator Reliance Communications (RCom) today said it has extended the exclusivity period with shareholders of Aircel for potential combination of mobile businesses of two companies.
The 900 Mhz band was seeing interest from companies like Bharti Airtel, Vodafone, Idea Cellular and Reliance Communication, whose licences have been coming up for renewal.
On cash availability, Himanshu Kapania, MD of Idea Cellular says the company is well-placed to renew existing spectrums in 900 MHz band. In its Q3 results, the company reported cash profit of around Rs 2,000 plus crore. Next year it expects to generate Rs 10,000 crore cash profit.
The next round of spectrum auction for 2G and 3G networks will be held from February 25, through which the government targets to garner at least Rs 64,840 crore. A notification was issued by the Department of Telecom in this regard on Friday.
Delinking of spectrum from licenses and spectrum trading will ensure future M&A may be more about acquisition of subscribers and not spectrum.
Shares of Bharti Airtel jumped 5 percent while Idea Cellular soared 6 percent as Reliance Jio did not win the 900 mhz spectrum as feared. Barclays says lack of aggressive policy from Reliance-Jio is a positive for the existing incumbents.
The auction started with expectations of rational bidding, however, after 42 rounds, the price quoted for 900 MHz band has been running into Rs 3,668.15 crore.
At the end of fourth day, telecom companies had jointly made bids worth about Rs 52,689 crore.
Unlike the previous two rounds, 2G spectrum has been bid for aggressively this time. What was different?
Delhi and Mumbai circles remained the most wanted in the 900 Mhz spectrum band.
Airtel, which submitted the highest amount in bank guarantees, sought the reduction today, the last day for withdrawing applications to participate in the auction.
The rating agency expects the telecom sector to witness polarised operational improvements in the new fiscal. It said the pre-tax margins of top three telcos together expanded by 391 basis points in the first six months of the current fiscal, while weaker telcos are still incurring pre-tax losses.
Speaking to media after the EGoM meeting union telecom minister, Kapil Sibal said the government hopes to raise Rs 30,000-40,000 crore from one-time spectrum fee.
Vodafone India, which won bids in 14 circles, said it had participated in the 2G auction to secure additional spectrum. "Vodafone India has always maintained that auctions are the best and the only transparent method for allocation of spectrum.
Telecom analyst Kunal Bajaj explains to CNBC-TV18 that he expects the impact of the retainment of 2.5 Mhz in the 900 Mhz on refarming to be positive and it would be difficult to estimate the revenues that would accrue to the government.