Summery
Jio leads the way with highest earnest money deposit of ₹3000 crore for spectrum auction which offered 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands and valued at ₹93000 crore.
Reliance Jio Infocomm Ltd has allocated an amount of ₹3,000 crore for the upcoming spectrum auction, three times compared to its rivals. According to disclosures to the Department of Telecom (DoT), Bharti Airtel Ltd has put in ₹1,050 crore and Vodafone Idea ₹300 crore as earnest money.
In the previous spectrum auction, the DoT received an essential deposit (EMD) of ₹21,800 crore. India’s first 5G auction in July 2022 was a big success, earning the government ₹1.5 lakh crore.
Interestingly, Jio has deposited the highest amount despite none of its licenses being up for renewal. In contrast, Airtel and Vodafone Idea have to renew airwaves in specific circles during the upcoming auction scheduled for June 6.
In this auction, Sunil Mittal-led Bharti Airtel is focused on renewing airwaves in J&K, Odisha, Bihar, UP (East), West Bengal, and Assam. On the other hand, Vodafone Idea which recently raised funds through a Follow-on Public Offer (FPO), seeks to renew the spectrum in the West Bengal and UP West circles.
Successful bidders will secure spectrum rights for 20 years, with options to pay in 20 equal annual instalments. The DoT has allocated the highest eligibility points, 21,363, to Jio for the upcoming auction, followed by 7,613 to Airtel and 2,200 to Vodafone Idea. All telecom operators can bid across various bands and service areas based on eligibility points and spectrum caps.
As per the DoT's website, as of December 31, 2023, Jio reported a net worth of ₹2.31 lakh crore. Airtel's net worth stood at ₹86,260 crore as of May 6, 2024, while Vodafone Idea's net worth was negative ₹1.17 lakh crore as of May 3, 2024.
The upcoming auction on June 6 will offer spectrum valued at ₹93,000 crore across bands including 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz.
Invest in best pharma mutual funds in India for 2020 with Investica. Explore our top recommended pharma mutual funds to start investing today.