Where is the 5G Spectrum Auction headed after Day 6?

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The 5G Spectrum auction with the most prominent market players bidding completed 6 days on Sunday. This is one of the biggest biddings in Indian telecom history. It enters the second week, increasing audience expectations. 

On Tuesday, 26 July 2022, the bidding started amongst the telecom industry players; Mukesh Ambani’s Jio, Sunil Mittal’s Bharti Airtel, Vodafone-Idea, and the new entrant Adani enterprise by Gautam Adani. On Sunday the auction completed day 6 by raising their bids higher. The companies are expected to continue this auction for a few more days. Ideally, it was estimated for two days but the companies were well prepared and planted their strategies resulting in a tough yet valuable bid. 

The bid is made for the 5th Generation of networks (5G), to gain the airwaves required for service provision. This bid is handled and controlled by the Telecom Regulatory Authority of India (TRAI) with Ashwini Vaishnaw the telecom minister of the country on the board. The radiowaves of 72GHz (gigahertz) are on the table of this auction. In the bid, there are various other high and low frequencies as well; ranging from 600 MHz (megahertz) to a mid-range of 3,300 MHz and a higher frequency band range of 26GHz. 

The total value of bidding is nearly ₹1.5 lakh crores by the telecom giants. The government’s 72 GHz is worth ₹4.3 lakh crores. Proto testing of the new high-speed network service was done in parts of eastern Uttar Pradesh; Allahabad, Kanpur, Varanasi, Gorakhpur, and Lucknow on Wednesday and since then the urgency of demand has risen. There is an increased need for the 1,800 MHz bands, which were used for 4G network services but are now bided for excellent 5G services. The demand for this rose after Wednesday’s testing and was high on Thursday and Friday. On Saturday the bid caught the attention of the supply blocks but the demand surged again on Sunday, day 6.

From the beginning, the demand was for 75 blocks as against the supply of 54 blocks, but since Saturday this has lowered. Now the demand has fallen to 50 blocks decreasing the supply altogether. As of Saturday, 71 percent of the spectrum has been sold on the block.   

 The new 5G connection will not only enable super fast internet speed for download and upload at all times but will also come with e-health services, vehicle connections, metaverse experiences, cloud gaming, life-saving uses, etc. These services will be provided efficiently even in crowded places ensuring high speed at all times. 

According to industry experts, the bid has entered its final leg and will conclude soon. The industry experts had expected aggressive bidding and an auction of not more than two days. But the players took it slow, Jio, Mukesh Ambani’s telecom giant was expected to take over every other player. The company’s strategy turned out to be completely different.

The company had put in the highest money pre-auction which was greater than the total of the other three, which gave the company a greater advantage. This increased the eligibility amount for the company. On the other hand, the biggest competitor threat Adani Enterprises by Gautam Adani pitched in a lower amount.

This was a shock for the industry players and the stakeholders. As a new entrant in the industry, the company’s strategy is working well and is a tough competition. 

The companies will resume their bidding from Monday and are soon expected to close the bid. This 5G Spectrum auction is expected to bring a revolutionary change in the telecom industry. This will help the economy and also boost the country’s overall development. 

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Neha Shah
Neha Shah
Neha is a young writer with a keen interest in business, economy and share markets. She has also written across genres like entertainment, technology and politics. Her writing can be described as simple and to the point.

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