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5G mall decorated, businesses worth Rs 17.53 lakh crore to create atmosphere

Sagar Patel

By Sagar Patel

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The 5G spectrum auction began on Tuesday.

Yes, the government has decorated the mall with 5G. In which the billionaires have entered. Three big companies of the country whose estimated market capitalization is more than Rs 17.50 lakh crore will create a complete atmosphere. You must have understood it. Today, that is, starting Tuesday, the 5G spectrum auction has begun in the country. The value of this auction is said to exceed Rp96 billion. In which the highest bidders, Mukesh Ambani’s Reliance Jio and Airtel, can bid the highest. So both companies can get help to increase their 5G service. On the other hand, Vodafone Idea is also in the race. Let’s try to understand what are the special features of this auction.

Auction started

The auction of 5G spectrum worth Rs 96,238 crore began on Tuesday. Companies like Airtel and Reliance Jio are expected to bid on this, which will help expand their 5G services. This is the 10th spectrum auction since the process of selling radio waves went online in 2010. The last auction was held in August 2022, which included radio waves for 5G services for the first time.

Applications were invited for these

According to the statement, to improve the existing telecommunication services and maintain service continuity, the government started the spectrum auction on Tuesday, June 25, 2024. This is in line with the government’s commitment to provide affordable telecommunication services, of latest generation and high quality to all citizens. The spectrum auction is carried out by the Department of Telecommunications (DOT). For this purpose, the Notice of Invitation to Apply (NIA) was issued on March 8. It should be noted that all the spectrum available in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands is part of the tenth auction.

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Who paid how much guarantee money?

Reliance Jio has posted the maximum collateral of Rs 3,000 crore for the spectrum auction. On this basis, the company can bid for the maximum number of radio waves. According to the Department of Telecom, Bharti Airtel has deposited Rs 1,050 crore and Vodafone Idea (VIL) has deposited Rs 300 crore as collateral. Debt-ridden Vodafone Idea Ltd may focus on strategic acquisitions, especially in the 26 GHz band, to reduce its spectrum usage charges.

These are the special characteristics of this spectrum.

  1. Spectrum auction for 10,500 MHz radio waves worth over Rs 96,238.45 crore (at reserve price) started today at 10 am The auction bands include 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz.
  2. The bands purchased in this auction will be valid for 20 years from the date of purchase, and telecom companies will be able to hand over their spectrum after 10 years from the date of purchase.
  3. Partial payment of the two-year installment or multiple of all subsequent years will be accepted for payment. The second option is to pay equal annual installments for 20 years, with the first installment to be paid within 10 days of the auction.
  4. In addition, prepayment of the spectrum owed has been allowed without penalty, and buyers can opt for a moratorium for the respective years of prepayment.
  5. The 3300 MHz band may attract Reliance Jio and Bharti Airtel. It is one of the leading bands offering 5G services with low capital expenditure. The radio wave segment from 20 MHz to -100 MHz in the 3300 MHz band will be auctioned.
  6. Taking into account demand, spectrum reserve prices in the 3,300 MHz and 26 GHz bands were increased by 12 percent and 8.9 percent respectively.
  7. DoT has not included any spectrum in the 600 MHz and 700 MHz bands in this auction.

What is the valuation of which company?

Of these three private telecom companies, only Airtel and Vodafone Idea are listed on the stock market. Airtel’s current valuation is over Rs 8 lakh crore. On the other hand, Vodafone Idea’s market capitalization is currently Rs 1,17,837.74 crore. Currently, Vodafone Idea shares are trading at Rs 17.36. While Airtel share is trading at Rs 1,416.60.

On the other hand, Reliance Jio is currently unlisted. But it is the largest telecom company in the country in terms of user base. According to a media report in May 2024, Mukesh Ambani’s Reliance Group could start Reliance Jio’s IPO first. Whose valuation may be $100 billion i.e. Rs 8.3 lakh crore. According to the report, the company’s share price is estimated at Rs 1,200.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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