5G spectrum auctions: Bharti Airtel likely largest bidder, government mops up around US$ 1.35 billion (Rs. 11,300 crore)

The Indian government concluded its second 5G spectrum auction, netting approximately US$ 1.35 billion (Rs. 11,300 crore) after 7 rounds spanned just over a day. Bharti Airtel emerged as the leading bidder, focusing its investments on acquiring spectrum in key bands like the sub-GHz 900 MHz alongside the 1800 MHz and 2100 MHz bands. In contrast, Reliance Jio's participation was restrained, primarily targeting the 1800 MHz band for enhancing its 4G and 5G network capacities. Vodafone Idea (Vi) also secured spectrum across multiple bands, aligning its purchases with renewal needs and strategic top-ups in specific circles.

Both Bharti Airtel and Vi strategically deployed their bids in circles where their current licenses expire this year, aiming to fortify their market positions and infrastructure capabilities. Airtel notably strengthened its sub-GHz spectrum holdings with additional 900 MHz airwaves, signalling its intent to expand 5G coverage nationwide and bolster rural 4G networks. Despite the auction offering 10.5 GHz of 5G airwaves valued at US$ 11.52 billion (Rs. 96,238.45 crore) at reserve prices, the total bids received were roughly consistent with earlier figures. However, the revenue collected falls significantly short of previous highs, notably below the record US$ 17.97 billion (Rs. 1,50,173 crore) from the July 2022 5G sale and the US$ 9.31 billion (Rs. 77,814 crore) from the March 2021 4G auction.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.