Stock Market

As spectrum auction ends, govt makes Rs 65,789 crore

The five-day spectrum auction has concluded with government minting close to Rs 65,789 crore lower than the expectation of Rs 1 lakh crore.

While this is lower to what government had garnered last year, this is higher than most analysts’ expectations of Rs 30,000-40,000 crore.

The government has netted Rs 2,446 crore  for the Mumbai circle in 1800 MHz band. 

The premium spectrums – 700 and 900 MHz – did not find any bidders due to expensive base price decided by the Telecom Regulatory Authority of India (TRAI). The government is likely to ask TRAI to re-work on the base price, reports CNBC-TV18’s Prerna Baruha.

The current auctions will be a big disappointment, says industry expert Mahesh Uppal. The companies had to forego the 700 MHz and focused on 4G circles to fill gaps in the current areas.

“Companies are keen on not to lose out, particularly if they have significant market share already,” he says.
Telcos have bid this time to fill gaps in their regional coverage, says Romal Shetty, Head-Telecom at KPMG. 1800 MHz is to enhance 4G connectivity and 2100 MHz for 3G services.  

The auctions saw neck-to-neck bidding for three circles including Mumbai and East Uttar Pradesh. Sources further say that 1800 Mhz saw the highest bidding  followed by 2100 Mhz and 2300 MHz.

Uppal further says that the government need to re-work on reserve pricing for 700 MHz. 

More to follow..