With nearly 83 per cent of the spectrum put on auction being provisionally allocated at the end of the sixth day of bidding on Tuesday, the Union government stood to rake in approximately Rs. 92,200 crore.
The amount is lower than the Rs. 94,000 crore at the end of day five as prices moderated.
Explaining the fall in the total value of bids, a government source said that as activity shifted towards the lower value spectrum of 1,800-MHz and 800-MHz bands, the overall allocation increased but the price levels slightly moderated.
Competitive bidding to continue for spectrum: Centre
The Union government expects competitive bidding to continue as the spectrum auctions resume on Wednesday, said an official release on Tuesday.
“A majority of service areas are going at a premium over the reserve price,” the Union Communications and IT Ministry said in the release with the total bids falling marginally to Rs. 92,200 crore on Tuesday.
“Brisk bidding was seen during the day, with activity requirement set at 100 per cent. There was activity in two new service areas in the 1,800-MHz band. There is a shift in activity from 2,100-MHz and 900-MHz bands to 1,800-MHz and 800-MHz bands. With 100 per cent activity requirement and activity in new service areas, competitive bidding is expected to continue,” the release said.
The government’s initial estimate of about Rs. 82,000 crore from the biggest-ever sale of 2G and 3G airwaves was exceeded on the fourth day. The sum is now expected to exceed Rs. 1 lakh crore.
Six rounds of bidding were completed on Tuesday, taking the total to 37 since the auction started on March 4. Airtel, Vodafone, Idea Cellular, Reliance Communications, Aircel, Reliance Jio Infocomm, Uninor and Tata Teleservices are in the fray.
Airtel, Vodafone, Idea Cellular and Reliance Communications now hold most of the spectrum put up for auction. Their licences expire in 2015-16.
The government will not release the results of the auction till a case pending before the Supreme Court is disposed of.
