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Telecom spectrum auctions to commence today, all you need to know

On December 17, 2020, the Union Cabinet had approved a proposal for the auction of 2,251.25 MHz of spectrum worth Rs 3.92 lakh crore at base price.

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The bidding for the sixth round of spectrum auction will commence from Monday (March 1), the centre had said in a notice issued in January 2021. The auction will be for radio waves worth Rs 3.92 lakh crore. On December 17, 2020, the Union Cabinet had approved a proposal for the auction of 2,251.25 Megahertz (MHz) of spectrum worth Rs 3.92 lakh crore at reserve price.

“By winning the right to use spectrum through the auction, incumbent telecom service providers will be able to augment their network capacity whereas new players will be able to start their services,” an official release from the government read.

-Airwaves for sale: a total of 2251.25 MHz of airwaves

-Spectrums for sale: 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz frequency bands

-The airwaves will be up for bidding at a base price of Rs 3.92, the government had said.

-The 5G airwaves will not be put up for bidding.

-About 40% of the 2,35 MHz of spectrum worth Rs 5.6 lakh crore put up for auction were sold in the last spectrum auction held in 2016. The government got bids worth Rs 65,789 crores.

-There were no takers for 700 MHz and 900 MHz in the 2016 auctions due to the high base prices.

-As per the spectrum auction rules, a firm can bid for spectrum only as per eligibility point allocated based on EMD submitted by it.

-Successful bidders in addition to the bidding amount, will also have to pay 3% of the Adjusted Gross Revenue (AGR) excluding wireline services.

-Vodafone Idea (Vi) has put in EMD of Rs 475 crore for the auctions.

-While Bharti Airtel has deposited Rs 3000 crore for the auctions.

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