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Mega Spectrum Auction: Reliance Jio Infocomm set to participate

Reliance Jio Infocomm Shall Participate With Six Other Major Telecom Operator In India's Biggest Spectrum Auction Beginning October 1

News Nation Bureau | Edited By : Gautam Lalotra | Updated on: 15 Sep 2016, 03:29:21 PM
Reliance Jio Infocomm - File Photo

New Delhi:

As per reports in leading financial dailies earlier in the day, India's biggest spectrum auction scheduled to begin October 1 shall witness Reliance Jio Infocomm participate with six other major telecom operators which include Bharti Airtel, Vodafone and Idea Cellular in the bidding process. 

As per government officials, Reliance Communications, Aircel and Tata Teleservices also submitted their applications and earnest money deposit, which represents their intent to bid. Norwegian telecom operator Telenor was the only notable absentee from the application process on September 13, which was the last date of submitting their application.

The government is auctioning 2,354.55 MHz of spectrum — the most ever — across seven bands, including 700 MHz band, which is being offered for the first time. 

At the reserve price, the airwaves are valued at over Rs 5.6 lakh crore, of which Rs 4 lakh crore is expected from the 700 MHz bandwidth, considered the best for 4G services. However, experts said the auction may fetch a lower amount, with estimates of proceeds ranging from Rs 70,000 crore to Rs 150,000 crore, given that companies are not renewing their spectrum holdings this time and the high price of the 700 MHz band.

Telecom minister Manoj Sinha, while saying he expects telcos to bid in the auction to plug their coverage gaps, has refused to comment on the estimated auction proceeds. According to Fitch Ratings, both Vodafone and Idea may spend over $2 billion and about $1.3 billion, respectively, to secure additional 4G and 3G airwaves. 







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First Published : 15 Sep 2016, 03:16:00 PM

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