In Short:
The Department of Telecom has postponed the spectrum auction to June 25, with Reliance Jio depositing the highest earnest money. The auction will include eight spectrum bands for mobile services at a base price of approximately Rs 96,317 crore. Companies like Bharti Airtel and Vodafone Idea have also submitted deposits. Higher deposits mean a stronger ability to bid for spectrum. Successful bidders can make payments over 20 years, with an option to surrender spectrum after 10 years.
DoT Postpones Spectrum Auction to June 25
The Department of Telecom (DoT) has announced the postponement of the spectrum auction by 19 days, with the new date set for June 25. This decision was reflected in the amendments made to the notice inviting applications for bids on Tuesday. Initially scheduled for June 6, the start of the live auction has been rescheduled to June 25.
The upcoming auction will involve the sale of eight spectrum bands for mobile phone services, with a base price set at approximately Rs 96,317 crore. These spectrum bands include 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz.
Key Players in the Auction
Reliance Jio has deposited the highest earnest money of Rs 3,000 crore, positioning itself to bid for the maximum amount of radiowaves. Bharti Airtel and Vodafone Idea (VIL) have also submitted earnest money deposits of Rs 1,050 crore and Rs 300 crore respectively. Companies earn points based on the EMD amount deposited, which dictate their bidding capabilities.
Terms of Spectrum Assignment
The assigned spectrum will have a validity of 20 years, with successful bidders allowed to make payments in 20 equal annual installments. Additionally, the DoT has introduced an option for companies to surrender acquired spectrum after a minimum period of 10 years.
