Govt set to revise spectrum revenue target

Assured amount touches Rs 94,000 crore so far

The government is set to surpass its revenue estimates from the spectrum auction, as the assured revenue from the spectrum sale on Monday reached Rs 94,000 crore.

By the end of the fifth day, 31 rounds of bidding had been completed and the committed revenue stood at Rs 94,000 crore, according to the department of telecommunications (DoT). The government had estimated the auction would generate Rs 80,000 crore to 1 lakh crore from the sale of spectrum in four bands — 800, 900, 1,800 and 2,100 MHz.

After securing spectrum in 12 circles in 900 MHz, telecom companies secured spectrum in other bands — seven circles in 800 MHz, four circles in 1,800 MHz and 13 circles in 2,100 MHz, according to the daily report of department of telecommunications. “There is still spectrum which is yet to be sold,” said DoT.

Till now, the most aggressive bidding has happened in the 900-MHz band, which is used for offering voice services. According to new norms, this band can also be used for 3G mobile services. The maximum revenues for the government will also come from this band.

The mobile licences of Idea Cellular (nine circles), Bharti Airtel (six circles) and Vodafone and Reliance Telecom (seven circles each) are due for renewal in 2015-16. As such the ongoing spectrum auction is crucial for these companies. Overall, 29 licences in 18 service areas are due for renewal in 2015-16. These licences hold 184 MHz of spectrum in the 900-MHz band and 34.2 MHz in the 1,800-MHz band.

On the first day, the government had received bids for Rs 60,000 crore. The auction is expected to go on for at least two weeks. In the last spectrum auction in February 2014, the government had raised Rs 62,162 crore.

Other companies participating in the auction include Reliance Jio, Tata Teleservices, Uninor and Aircel. Together, these companies have submitted earnest money of Rs 20,435 crore.

The DoT won’t be able to announce the final results of the auction because of a Supreme Court order barring it from doing so without its permission. A hearing in the Supreme Court in this regard is scheduled for March 26.

Through the ongoing auction, the government is selling 380.75 MHz of spectrum in the 800-MHz, 900-MHz and 1,800-MHz bands, besides five MHz in the 2,100-MHz band, across 17 of the 22 circles. The reserve price approved is Rs 3,646 crore for a MHz pan-India in the 800-MHz band, Rs 3,980 crore for the 900-MHz band pan-India, Rs 2,191 crore for the 1,800-MHz band pan-India and Rs 3,705 crore for every MHz in the 2,100-MHz band.