Telecom operators placed muted bids in the Central government's second 5G spectrum auction on Wednesday, pooling a total of Rs 11,340 crore for 141.4 MHz of airwaves. Merely 12% of the reserve price of Rs 96,238 crore is represented by the bid value. There were seven rounds of bidding, and the auction ended in two days.

With airwaves purchased for Rs 6,856.76 crore, Bharti Airtel emerged as the highest bidder, followed by Vodafone Idea at Rs 3,510 crore. The biggest telecom company in India, Reliance Jio, put down the most earnest money of Rs 3,000 crore, but their offer for more spectrum was just Rs 973.62 crore.

During the August 2022 5G spectrum auction, the government achieved a record-breaking Rs 1.5 lakh crore. With the exception of Reliance Jio, the majority of telecom service providers (TSPs) engaged in the auction primarily to renew their expiring spectrums, which is why there was such a lackluster response this time.

In order to extend its expiring licenses and strengthen its mid-band spectrum holdings in a few chosen circles, Bharti Airtel, under the leadership of Sunil Mittal, purchased 97 MHz of spectrum. For Rs 1,001 crore, Bharti Hexacom, a Bharti Airtel subsidiary, purchased 15 MHz of airspace.

In as many as 11 circles, Vodafone Idea acquired 50 MHz of spectrum from low-band and mid-band series (900 MHz, 1800 MHz, and 2500 MHz).

In Bihar and West Bengal, Reliance Jio secured more spectrum in the 1800 MHz range. Voice and data communications for mobile phones are carried across the available radiowaves.

"The 2024 spectrum auction was a component of an ongoing allocation process. TSPs have acquired spectrum to enhance their offerings and ensure service continuity, but the quantity is restricted as a significant portion of the necessary spectrum was already auctioned off last year," stated Union Minister of Telecommunications Jyotiraditya Scindia.

Lukewarm Reaction

Spectrum in the following bands was up for sale this year: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz. But only the 900 MHz, 1800 MHz, 2100 MHz, and 2500 MHz bands piqued the interest of telecom companies.