Spectrum auction: No action yet in 700/900MHz bands on Day 2

Telecom circles including Mumbai, Rajasthan and Gujarat saw higher bidding on the second day of the spectrum auction today, but the premium 700 Mhz and 900 Mhz bands still remained without takers even after three rounds conducted so far.
The first day, October 1, attracted bids worth Rs 53,531 crore in 5 mobile frequency bands on auction.
The bidding is in progress, and the Department of Telecom is expected to issue an update at the close of the day.
The 1800 Mhz spectrum band continued to see major bidding action in five circles, especially Maharashtra and Mumbai, industry sources said.

"There was major bidding activity even in the 2300 Mhz band, while 2100 Mhz and 2500 Mhz bands also saw some level of activity," sources added.
As much as 2,354.55 megahertz of frequencies have been put up for auction in seven bands valued at Rs 5.63 lakh crore at base price.

The premium 700 MHz band is being auctioned at a reserve or base price of Rs 11,485 crore per Mhz. This band alone has the potential to fetch bids worth over Rs 4 lakh crore, if the entire spectrum in this band is sold at the base price.
Seven telecom companies -- Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio, Aircel, Reliance Communications and Tata Teleservices -- are in the fray for acquiring 3G and 4G airwaves that are going to be crucial for maintaining competitive edge in the market and offering next generation services in the world's second largest telecom market.

Five bidding rounds had taken place on Saturday and operators had shown keen interest in 1800 Mhz band -- a frequency used for delivering 2G/4G services.
Operators had also placed bids for spectrum in 2100 Mhz (3G/4G) band, 2500 Mhz (4G) band, 2300 Mhz (4G) and 800 Mhz (2G/4G) bands too, on October 1.