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| Edited By: |Source: Reuters |Updated: Mar 17, 2018, 03:36 AM IST
The first day of the much-awaited 3G (third generation) telecom auction witnessed intense competition and high bidding for metros like Delhi and Mumbai as well as for A-circle states like Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu (with Chennai). At close on Friday, the total bid amount was pegged at Rs12,000 crore, a third of the total targeted revenue of Rs35,000 crore for 3G and broadband wireless access (BWA) auction. Analysts called it a good start; the final outcome could take weeks and competition is expected to intensify as the auction, which is being conducted online, advances. Information about which operator has bid for which circle, and how much, will only be available at the end of the process.
At the end of the first day, Delhi topped the charts in terms of the provisional winning price, with Rs373.29 crore. This is higher than the reserve price of Rs320 crore fixed for Delhi by the government. Out of the nine aspirants for 3G services, only three indicated demand for the Delhi circle after five rounds of bidding. Delhi has only three 3G slots open for private operators, but the auction process in the circle can’t be closed till other regions are in play.
Mumbai, Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu also saw high bidding on Day 1. These circles closed the day at Rs362.66 crore. Four out of nine bidders expressed demand for Mumbai, Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu. There were three bids for Karnataka. Three slots are available across Mumbai and A-circle regions.
In places like Kolkata, Kerala, Punjab, Haryana, Uttar Pradesh (East), Uttar Pradesh (West), Rajasthan, Madhya Pradesh and West Bengal (B circle), the price after Round 5 of bidding was Rs135.99 crore, Rs134.65 crore, Rs121.20 crore, Rs133.32 crore, Rs135.99 crore, Rs135.99 crore, Rs132.30 crore, Rs133.62 crore and Rs120 crore, respectively. The reserve price for each of these circles was Rs120 crore. In effect, West Bengal and Punjab have seen the least demand so far in the B circle, with the provisional winning price remaining equal to the reserve price. The demand for the B circle after Round 5 of bidding was: Kolkata, 3 players; Kerala, 3; Punjab, 4; Haryana, 2; UP (East), 3; UP (West), 3; Rajasthan, 2; Madhya Pradesh, 3; and West Bengal, 3.
The auction process would close once all the circles achieve an equilibrium, that is the number of slots available equal the number of bidders.
