Bidding for spectrum lost some steam on Day Two with the total revenue for the Centre moving up to ₹65,000 crore. Day One had seen bids worth ₹60,000 crore driven by the demand for airwaves in the 900 MHz band.
Going by the initial trends, the Centre could look at netting over ₹1-lakh crore by the end of the auction. The Centre would get a minimum of ₹82,000 crore if all the spectrum put on the block gets sold at the reserve price. The Department of Telecom is selling air waves in 800 MHz, 900 MHz, 1800 MHz and 2100 MHz bands.
Of this, the 900 MHz is the most sought after because it suits both 2G voice telephony and mobile broadband services. At the end of the second day, the bid amount for 900 MHz was 70-80 per cent higher than the reserve price in most circles.
In Punjab, the bid price of ₹5,157 crore per MHz was double the base price. There is good demand for spectrum in the 900 MHz band in Bihar, Uttar Pradesh and Orissa, but remained subdued in the metros.
Bidding for 800 MHz and 1800 MHz bands continues to be sluggish. As many as 11 circles in the 800 MHz band have no takers.
Muted biddingThe 2100 MHz had no takers in the Delhi and Mumbai circles, which are considered the most lucrative. This could be because the operators know there will be another auction for 2100 MHz in FY 2016 with at least 15 MHz spectrum on the block.
In the ongoing sale, only 5 MHz has been put on the block, that too at a price with which not many operators were comfortable.
Even where there has been some bidding, the premium is only 15-17 per cent to the reserve price. Rajasthan, for example, had a bid of ₹509 crore per MHz compared to the base price of ₹435 crore