Rs 96000 crore spectrum auction for 5G airwaves begins today

The 5G airwaves auction in India, which begins on Tuesday, is expected to be subdued, with telecom giants having adequate holdings and low consumer 5G adoption.

Image source: Shutterstock

Analysts predict that Reliance Jio, Bharti Airtel, and Vodafone Idea will spend approximately Rs 12,500 crore, primarily on renewals and selective acquisitions. Interest rates for deferred payments are higher this year, with Airtel expected to be the biggest spender.

Private sector telecom operators Reliance Jio, Bharti Airtel, and Vodafone Idea will compete for 5G airwaves worth approximately Rs 96,320 crore when India’s latest spectrum auction begins on Tuesday.

According to sector experts, the sale could end in a few days with muted bidding, and the proceeds could be much lower than the previous auction in 2022, when the government netted a record Rs 1.5 lakh crore over seven days.

Approximately 10.5 GHz of 5G airwaves in eight bands—800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3.3 GHz, and 26 GHz—will be available for purchase.

According to some experts, the government could earn around Rs 10,000 crore, while another section estimated the bids to be between Rs 20,000 and 25,000 crore, given that the three operators can bid for airwaves worth Rs 52,000 crore based on the earnest money deposited.