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Spectrum auction ends, govt mops up Rs 61,141 cr

Source : BUSINESS_STANDARD
Last Updated: Thu, Feb 13, 2014 12:40 hrs
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The Government has been able to mop up an estimated Rs 61,141 crore from the auction of 900MHz and 1800MHz spectrum that ended on Thursday after 10 days of aggressive bidding by the telcos.

As companies have the option to pay in instalments, the Government will get a little more than Rs 18,000 crore in the current fiscal year, about 57% higher than the Government’s Budget target of Rs 11,343 crore for the current year.

The total earning of the Government from the 2G auction is 61% higher than the value of entire spectrum being auctioned at reserve price (Rs 37,903 crore), and about 20% more than what the Government had earned from the 3G auction in 2010 by selling 20MHz of radiowave for Rs 50,968 crore.

In the deferred payment mode, telcos will have to pay 25% of the total bid amount for 900MHz band and 33% of the total bid amount in 1800MHz band in the first year. The remaining amount will be paid in instalments over the next few years.

In the 900MHz band, Delhi was the most sought after circle where price increased by 106% to Rs 740.96 crore as compared with the original reserve price of Rs 359.65 crore. Prices have also increased in Mumbai 71.9%) and Kolkata (55.3%) as compared with the reserve price.

In the 1800MHz band, spectrum price has increased the most in Assam by more than 400% over the past 10 days.
The Government had auctioned 46Mhz spectrum in 900MHz band in Delhi, Mumbai and Kolkata, while 385MHz in 1800MHz band.

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