5G spectrum auction ends with bids topping Rs 1.5 lakh crore; Reliance Jio leads bidders

(Representative image)

The auction for 5G spectrum has concluded with the government cumulatively receiving bids of over Rs 1.5 lakh crore, Union Telecom Minister Ashwini Vaishnaw said.

Out of the 72,098 MHz of total spectrum on offer, around 71 percent or 51,236 MHz has been sold in the auction held through 40 rounds of bidding over the past seven days, Vaishnaw said. The government has received a "total bid amount of Rs 1,50,173 crore", the minister noted.

The spectrum allocation will be completed by August 10, Vaishnaw said, adding that the amount of spectrum purchased is "enough to cover the whole country with 5G".

The successful auction of 5G spectrum is also a "healthy sign" for the country's telecom sector, he further said.

Reliance Jio, the telecom arm of Reliance Industries Ltd (RIL), is the largest acquirer of 5G spectrum, with bids of over Rs 88,000 crore.

Jio is the only bidder to have acquired 700 MHz in all 22 circles, Vaishnaw said. 700 MHz has a range from 5 to 10 km, which gives the telecom operate a solid base coverage.

Cumulatively, Jio has acquired 24,740Mhz (700, 800, 1800, 3300, 26GHz) of the spectrum put on auction, at a payable amount of Rs 88,078 crore.

Among the three other bidders, Bharti Airtel took 19,867 MHz (700, 800, 1800, 3300, 26GHz) for a payable amount of Rs 43,084 crore. Vodafone Idea, which is considered as the third major telecom sector player after Jio and Airtel in terms of market share acquired spectrum worth Rs 18,799 crore.

Adani Data Networks, an arm of the Adani Group and the latest entrant in the sector, has acquired 400 MHz for a payable amount of Rs 212 crore.

Jio, which emerged as the top bidder, has consolidated its leadership position in all 22 circles by acquiring right to use spectrum in the 700MHz, 800MHz, 1800MHz, 3300MHz and 26GHz bands.

"Jio is fully ready for 5G rollout in the shortest period of time because of its nationwide fibre presence, all-IP network with no legacy infrastructure, indigenous 5G stack and strong global partnerships across the technology ecosystem," the company said in a statement.

Jio’s unique 700 MHz spectrum footprint will make it the only operator providing 5G services across India. "We will celebrate ‘Azadi ka Amrit Mahotsav’ with a pan India 5G rollout. Jio is committed to offering world-class, affordable 5G and 5G-enabled services," Akash Ambani, chairman of the telecom giant, said.

Gopal Vittal, the MD & CEO of Bharti Airtel, which emerged as the second highest bidder, said they adopted a "deliberate strategy to buy the best spectrum assets at a substantially lower relative cost compared to our competition".

"We are confident that we will be able to deliver the best 5G experience in India in terms of coverage, speeds and latency. This will allow us to change a lot of established paradigms for both our B2C and B2B customers. 5G technology is the revolution that can alter India’s manufacturing, services and several other sectors," Vittal added.

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