Author: Priyanka Dua

India is expected to receive a 5G network this year in October as the spectrum auction is completed. The Government has managed to garner Rs. 1.50 lakh crore from four companies, including Vodafone-Idea, Reliance Jio, Airtel, and Adani Data Networks.

It is worth noting that the 51,236 MHz band has been sold after 40 rounds out of the total 72,098 MHz spectrum bands. However, allocation of the spectrum will be done by August 10 and services are likely to be launched in October.

“Auction has been completed and in the next few days, till August 10, all formalities, including approving and allocating the spectrum will be done,” Union Minister of Communications, Electronics, and Information Technology Ashwini Vaishnaw was quoted by ANI.

“It seems we would be able to launch 5G in the country by October. The ongoing 5G spectrum auction indicates that the country’s telecom industry has come a long way in 5G advancements,” he added.

The minister further added that the availability of spectrum will boost the services of the telecom sector in India.

Reliance Jio 5G Spectrum Bidding: Details

It is important to note that Reliance Jio is the only telecom operator that made bids close to Rs. 88,078 crores, which is 58.65 percent of the total bidding. Reliance Jio has acquired 24,740 MHz spectrum 700 MHz, 800 MHz, 1800 MHz, 3300 MHz, and 26 GHz.

Notably, Reliance Jio is the only telecom operator that purchased spectrum in the 700MHz band, which analysts believe will give them an upper hand on Airtel and Vodafone-Idea.

“With Jio likely rolling out SA 5G, we believe that Bharti would be under pressure to have a similar network in coming years. In our view, this raises the risk of Bharti acquiring 700 MHz in the next auction (pricing likely to be similar to this auction). Even Capex investments should be higher – first to roll out NSA and then SA 5G,” BofA Securities said in a report.

5G Spectrum Auction: Airtel, Vodafone-Idea, And Adani Data Network Limited

India’s second-largest telecom operator Airtel has spent Rs.43,084 crores to acquire a 19.8 GHz spectrum in the five bands, including, 900 MHz, 1800 MHz, 2100 MHz, 3300 MHz, and 26 GHz.

“Airtel is delighted with the results of the 5G auction. This spectrum acquisition at the latest auction has been a part of a deliberate strategy to buy the best spectrum assets at a substantially lower relative cost compared to our competition,” Gopal Vittal, MD & CEO, Bharti Airtel, said.

On the other hand, Vodafone-Idea has spent only Rs. 18,799 crores for the 1800 MHz, 2100 MHz, 2500 MHz, and 26 GHz bands. Lastly, the Adani Group spent Rs. 212 crores in the auction and that spectrum will be used to provide network solutions for power generation, logistics, airports, and ports, which means that it has no intention of getting into the telecom sector.

The 5G spectrum auction has already started in India and Reliance Jio, Vodafone-Idea, and Bharti Airtel, including Adani Data Networks, are participating in the same.  The auction started on (July 26^th and managed to garner 1.45 lakh crore during the first day.

However, the Government has managed to get Rs. 4,000 crores from the bidding. This means the Government has so far received Rs. 1.49 lakh crore in total. “So far, at the end of the ninth round, we have grossed about Rs. 1,49,454 crores (Rs. 1.49 trillion). We have been able to successfully generate confidence in the industry,” Ashwini Vaishnaw, Communications Minister, informed the media.

Spectrum Auction Bands Battle

It is important to note that the Day 1 of the auction, telecom operators bid for frequencies like 600MHz and other low-band of airwaves, whereas on Day 2 telecom operators bid for the mid-band (C-band) like 3.3GHz and 3.67GHz. The high band like 26GHz airwaves also received bidding from the telecom operators.

It is worth noting that Reliance Jio has spent over Rs. 82, 500 crores on the different bands available on the airwaves. In fact, Jio’s earnest money deposit is also higher than any other operator. 

Meanwhile, Airtel emerged as the second bidder that is close to Rs. 46,000 crores. The telecom operator targeted 3.6GHz of the mid-band and 26GHz in the high band in the auction. However, it is expected that Airtel will not go for 700MHz bands.  Similarly, Vodafone-Idea spent Rs. 19,000 crores on the mid and high-band airwaves.

On the other hand, Adani Group spent Rs. 900 to Rs. 1,000 crores in the auction and bid for the 26GHz band.

1800MHz Band: Aggressive Bidding

According to an ET report, the 1800MHz band received aggressive bidding from India’s leading telecom operators Reliance Jio and Airtel. Notably, the band is good for providing connectivity.

The report claims that both fought for the same band in eight circles, including Madhya Pradesh & Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Northeast, Karnataka, Kerala, UP-West, and Rajasthan.

“In all those places, coverage is very important. To get good coverage, you need a lower band. We are confident that this will provide a very high quality of service to the far-flung areas of our country,” Vaishnaw added.

Reliance Jio, Airtel, and Vodafone-Idea are all set to bid in the upcoming election, which is why there are high chances that 5G plan prices might expensive than 4G plan pricing. The 5G plan pricing is expected to increase the average revenue per user growth.

Apart from the existing telecom player, Adani Group is all set to bid in the 5G auction, which will increase the competition in the sector.

5G Plan Price In India: Details

According to a new report in ET, “5G tariffs plans would be a key monitorable in the near term and a 5G premium (versus 4G) may provide the next leg of ARPU uptick for the telcos,” the Japanese brokerage firm said.

In fact, an analyst in a global brokerage firm said that said that 10-20 percent expensive as 5G will be launched in a few markets initially. Plus, 4G users can afford 5G devices or upgrade to 5G devices.