India spectrum auction raises $9.8b

Dylan Bushell-Embling
14 Feb 2014
00:00

Indian incumbents Bharti Airtel and Vodafone were the biggest spenders in a sharply competitive spectrum auction which wrapped up this week, paying around $3 billion each for valuable 900-MHz spectrum.

The auction of spectrum in the 900-MHz and 1800-MHz bands has raised around $9.8 billion for the Indian government, Reuters reported.

New entrant Reliance Jio Infocomm will pay around $1.7 billion for spectrum in 14 of India's telecom circles. The operator last month confirmed that it is acquiring the spectrum to allow it to offer voice services, as well as the pan-India 4G data services it has planned.

Idea Cellular bid $1.7 billion for 900-MHz and other spectrum in capital Delhi, while Uninor, Reliance Communications and Aircel also secured 1,800-MHz airwaves in the auction.

The auction marked the Indian government's third attempt to reallocate the 2G spectrum freed from the cancellation of 122 telecom licenses in 2012. The previous two auctions ended with portions of spectrum left unsold, as operators stayed away due to complaints over the high reserve prices.

But several factors – including the participation of Reliance Jio and the fact that some operators' existing 900-MHz licenses in key cities are due to expire in November - ensured that competition for spectrum was much more robust this time around.

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