What was touted as a ‘big bang’ spectrum auction ended with a whimper on Thursday, with the Centre receiving bids worth only ₹65,789 crore.

Not even 50 per cent of the airwaves on the block found any buyers. The Department of Telecom had invited bids for over 2000 MHz spectrum worth ₹5.3 lakh crore. However the steep pricing, especially for the 700 MHz band, resulted in a tepid response from telecom operators.

Vodafone emerged the highest bidder with bids worth over ₹20,000 crore, followed by Airtel at ₹14,244 crore. Newcomer Reliance Jio won airwaves across key 4G bands for ₹13,672 crore.

Reliance Industries Chairman Mukesh D Ambani said, “We have expanded our spectrum footprint, thereby significantly enhancing capacity of our all-IP data strong network and ensuring world-class services for all Indians..”

Idea Cellular won spectrum worth ₹12,798 crore. Tata Teleservices pulled off a surprise, winning airwaves in the key markets of Delhi and Mumbai with a total bid of over ₹4,400 crore. RCom won spectrum in only one circle for a total bid of ₹65 crore, while its new partner Aircel bagged bandwidth for an estimated ₹1,100 crore

One of the big takeaways from the auction is that all the large operators are now gearing up to offer data services on mobile. The bidding patterns reveal that operators have bought 3G and 4G spectrum in areas where they currently do not have enough airwaves to offer broadband services.

Airtel, for example, has built new 4G and 3G capabilities in seven circles. Gopal Vittal, MD & CEO (India & South Asia), Bharti Airtel, said, “Airtel now has a solid spectrum portfolio that will enable it to continue leading India’s data revolution..”

Similarly, Idea Cellular said it can now offer 4G services on its own spectrum across 20 circles, including nine new service areas.

Chairman Kumar Mangalam Birla said, “Idea has filled all of its spectrum coverage requirements, while procuring a substantial part of its broadband capacity needs for the next decade.” The big worry, however, is that there were no takers for the 700 MHz band, suited for broadband services. The lack of enthusiasm was due to unrealistic pricing, and the high debt and single-digit growth that the industry is facing.

“We hope the Government and the DoT will take cognizance of the role a high reserve price had on bidding, and will recalibrate the price so that spectrum in the band can be put up for auction, maybe two years from now,” said Rajan Mathews, Director General, COAI.

However, the government was happy that it has raked in a highest amount of upfront payment in the past five years.

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