5G Spectrum Auction | Government receives Rs 1.45-lakh-crore bids on debut day

The Centre has received bids worth around Rs 1.45 lakh crore on the first day of 5G spectrum auction, Union Minister for Telecom Ashwini Vaishnaw said on July 26.

The response on Day 1 of the auction shows that the telecom industry has "turned the tide and is now growing into a sunrise industry", Vaishnaw said. "It will focus on investment and providing better quality of service," CNBC TV18 quoted him as saying.

Four rounds of auction were completed today, the minister noted, adding that "strong bids" were received from the applicants. Four bidders were in the fray — Reliance Jio, Bharti Airtel, Vodafone Idea and Adani Data.

The expected revenue of Rs 1.45 lakh crore is around 1.5 times higher than government's pre-auction estimates of Rs 80,000 crore to Rs 1 lakh crore. The highest collection so far stands at Rs 1.09 lakh crore, clocked during the 2015 spectrum auction.

Also Read: MC Explainer | 5G spectrum auction: All you need to know about it

According to government officials who spoke to CNBC TV18, the mid and high bands — 3,300 MHz and 24 GHz — attracted the highest interest from the bidders in the ongoing 5G spectrum auction, whereas, the 720 MHz low band too received bids for the first time ever — this band had gone unsold in 2019 and 2021.

The government will allocate the spectrum "in record time", Vaishnaw said, adding that the roll0ut of 5G service is expected from September, CNBC TV18 reported.

The minister further noted that the auctions are likely to be completed on July 27. The industry can can take a call on the tariffs that will be charged, he added.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.