33.1 C
New Delhi
Friday, June 14, 2024

Telco EMDs for June 5G sale hit lowest levels since 2014 auction: Analysts

More from Author

In Short:

Top telcos in India have submitted very low earnest money deposits (EMDs) for the upcoming 5G spectrum auction, signaling selective bidding. Analysts predict that only 21% of the $12 billion worth of 5G airwaves on offer will be sold. Reliance Jio, Bharti Airtel, and Vodafone Idea have submitted EMDs of Rs 3,000 crore, Rs 1,050 crore, and Rs 300 crore respectively. Jio might increase its spectrum holdings, while Airtel may focus on renewals and increasing market share. Vi is expected to renew only its 900 MHz spectrum in West Bengal. The auction will include airwaves in various bands worth almost Rs 97,000 crore at base prices.


Lowest EMDs in 5G Spectrum Auction Indicates Selective Bidding

In the upcoming 5G spectrum auction, India’s leading telcos have submitted earnest money deposits (EMDs) in the range of Rs 300-3,000 crore, the lowest since 2014. Analysts mention that these EMDs are 79-86% lower than the submissions in the previous 5G auction of 2022.

Indicative of Bidding Strategy

EMDs play a crucial role in showcasing a telco’s bidding strategy and spectrum buying capacity. It provides eligibility points to the applicant, allowing them to target specific quantum of airwaves.

Expectation of Selective Bidding

Analysts have predicted that the modest EMDs suggest a potential for selective bidding in the upcoming sale. They anticipate that the government may sell a maximum of 21% of the nearly Rs 97,000 crore worth of 5G airwaves on offer.

Key Players and EMD Submissions

For the upcoming auction starting June 6, Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have submitted EMDs of Rs 3,000 crore, Rs 1,050 crore, and Rs 300 crore respectively. These figures are significantly lower than their EMD submissions from the 2022 auction.

Analysis of Spectrum Spending

Analysts are analyzing the spectrum spending patterns of these telcos, with expectations for increased spectrum holdings and renewals in certain circles. The highest EMD among the three carriers has been submitted by Jio, hinting at potential spectrum acquisitions.

Predictions for Each Telco

Jefferies predicts different scenarios for each telco based on their EMD submissions and past auction trends. Airtel and Vi are expected to focus on specific bands and market strategies for their spectrum spends.

Upcoming 5G Auction Details

In the upcoming auction, airwaves in various bands worth almost Rs 97,000 crore will be up for sale. The absence of 600-700 MHz airwaves is influencing the spectrum strategies of telcos, leading to diverse approaches in bidding for the available bands.

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article