5G spectrum auctions: there’s a lot of money, but there’s no bidding war yet

• Day 1 of 5G spectrum auctions has already surpassed analyst estimates, even as telcos and Adanic remained less aggressive.
• Despite good demand, analysts say competition was low and bidding was at minimum prices.
• Here is the picture of the 5G spectrum auctions after the first day of bidding.

The highly anticipated 5G spectrum auctions in India have begun, with: Jio, airtel and Vodafone Idea, along with India’s richest man Gautam Adani – have already submitted bids worth ₹ 1.45 lakh crore, more than double what analysts had expected.

However, analysts suggest that despite good demand, bids were less aggressive, and bids were made at minimum prices – along expected lines.

According to reports, the three telcos and Gautam Adani have placed bids for spectrum in bands that support different specifications such as large coverage, high speed and low latency.

“After yesterday’s round 4, 40% of the available spectrum has been bid, which is in line with expectations. Aside from the midband (3300 Mhz) and the mm-wave (26 Ghz) required for 5G rollout, the 700 Mhz is sought after to catapult nationwide broadband penetration into the country,” said Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India.

This is what Jio, Airtel, Vi and Adani are bidding on

While Mukesh AmbanicJio’s and Sunil Mittal’s Airtel have bid for spectrum spanning a wide range of bands, Vodafone Idea’s bids have been limited to specific bands such as 3300MHz and 26GHz apart from a few other bands.

Adani Data Networks, on the other hand, seems to have focused its bids mainly on the 26GHz band and in certain circles where its ports and other companies have a presence. Unsurprisingly, Adani offers the most in the Gujarat circle where the Mundra gate is located. This suggests that Adani is focusing on spectrum for his business needs for now.

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Day 1 of 5G spectrum auctions has already surpassed analyst estimates, even as telcos and Adani remained less aggressive. Despite good demand, analysts say competition was low and bidding was at minimum prices. Here is the picture of the 5G spectrum auctions after the first day of bidding. The highly anticipated one in India has started, with Jio, Airtel and Vodafone Idea, along with India’s richest man Gautam Adani – who have submitted bids worth 1.

Morgan Stanley said there was no demand in the 600MHz and 800MHz bands yet. The 900MHz band (where Bharti Airtel and Vodafone Idea have a footprint) showed demand in two of the 21 circles (Assam and Jammu & Kashmir), gaining 12% of the total available spectrum.

The investment bank said that unlike the previous two auctions (2016, 2021) where no interest was seen in the 700MHz band, this round of spectrum auctions saw demand in 22 circles winning 40% of the total available spectrum.

In the previous round, telcos didn’t bid on spectrum in the 700MHz because the reserve price was very high – but Jio’s strategy this time is to resolve network quality concerns, which explains why it bid on the 700MHz band. .

According to Nomura, this will help Jio provide better quality services, especially indoor network coverage.

This may conflict with its rivals Airtel and Vodafone Idea, who have opted instead for the cheaper 900MHz, 1800MHz and 2100MHz bands.

Earlier, a report from IIFL Securities had estimated total spectrum bids at 71,000 crore, but with ₹1.45,000 crore already in the bag and day 2 of the auctions underway, the government’s 5G spectrum premium is only set to widen. .

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