Local telcos Bharti Airtel, Jio and Vodafone Idea will take place in the spectrum auction
India’s Department of Telecom (DoT) has announced a 19-day postponement of the upcoming spectrum auction, now scheduled to begin on June 25.
Local press reports stated that the decision was communicated through amendments in the notice inviting applications for bids. The DoT previously expected to start the process on June 6.
In the upcoming auction, 5G airwaves in the 800 MHz, 900 MHz, 1.8 GHz, 2.1 GHz, 2.3 GHz, 2.5 GHz, 3.3 GHz and 26 GHz bands will be up for sale.
The new 5G spectrum will be assigned for 20 years and successful bidders will be allowed to make payments in 20 equal annual installments.
The DoT previously confirmed that it received applications from local carriers Reliance Jio Infocomm, Bharti Airtel and Vodafone Idea. Reliance Jio Infocomm has made the highest earnest money deposit (EMD) for the upcoming auction, positioning itself to bid for the maximum number of radiowaves, followed by Bharti Airtel and Vodafone Idea. The EMD amounts determine the bidding points each carrier receives, which affects their ability to bid for the number of circles and spectrum quantity they desire.
The EMD-based points system allows carriers to bid on various circles and spectrum quantities, with higher points indicating a greater ability to place bids. This system aims to ensure that the most financially committed operators can secure the frequencies they need to expand their services.
Earlier this year, the DoT confirmed it will not auction the 600 MHz band in the upcoming spectrum auction, as the body aims to conduct more studies to ensure there is no interference with satellite operations.
According to local newspaper The Economic Times, an official had said that India wanted to be part of the countries offering IMT in 600 MHz, but that this was opposed by China. The 600 MHz spectrum band was put on sale in the last auction in August 2022, but it remained unsold.
India completed its first 5G spectrum auction in July 2022. Reliance Jio walked away with the most spectrum, having spent $11 billion. Airtel won spectrum worth $5.4 billion, while Vodafone received spectrum worth $2.4 billion. Finally, Adani purchased spectrum worth approximately $27 million, which it will use to offer private 5G network services.
Reliance Jio Infocomm has already completed the rollout of 5G technology in India. The carrier has been rapidly expanding its 5G network using Standalone (SA) architecture since October 2022. Meanwhile, Bharti Airtel previously said it expected to cover the entire country with 5G technology by March 2024.
Rival operator Vodafone Idea is expected to launch its 5G network this year and is currently in negotiations with vendors for 5G contracts, according to recent reports.
