India’s largest spectrum auction for airwaves worth nearly Rs 5.66 lakh crore has begun in New Delhi. The bids will be placed for frequencies totaling to nearly 2,354.55MHz for 4G services, by network operators in the country. The allocation will improve the quality of telecom services in the country.
According to PTI, biggies like Reliance Jio, Idea Cellular, Vodafone and Airtel will be bidding for the highest allotment of frequencies across seven bands inclusive of 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, and 2300MHz frequencies. The auction is obviously going to further fuel the war in the segment.
The government is expecting to earn enough to help it achieve its revenue target of Rs 98995 crore in this financial year. Nearly Rs 14700 crore was deposited as earnest payment for the auction. Reliance Jio has paid the highest share in this pot.
As stated by analysts and observers, Reliance Jio is likely to be in the spotlight for trying to win the largest share of the spectrum allocation in the 700MHz frequency. This band will be sold for the first time in India and is important in terms of 4G connectivity.
Also see: Telecom companies urge DoT to postpone spectrum auction
The spectrum auction had been eagerly awaited by the telecom companies as they are battling each other to provide high quality connectivity at the lowest prices to customers. The launch of Reliance Jio with its free 3-month trial subscription shook the sector and ultimately resulted in a price war.
The newly purchased frequencies from the government will improve service quality provided by telcos aiming to increase customer base with their offerings. The outcome of this auction will also decide how the network companies fare against each other.