5G Spectrum Auction ends

5G Spectrum Auction ends

5G is the 5th generation wireless standard mobile network after 1G, 2G, 3G, and 4G. 5G is a new kind of network that is designed to connect everyone and everything from humans, devices, or objects. It comes with three types of services- Low Band 5G, Mid Band 5G, and mmWave High Band 5G. The purpose of this new kind of network is higher speed, lag-free connectivity, greater capacity, and lower latency.

Recently, a seven-day 5G spectrum auction was held in India for the first time, which ended today with Mukesh Ambani’s Jio winning the bid for it. A record over INR 1.5 trillion worth of 5G telecom spectrum was sold in these 7 days.

Bidders-

Mukesh Ambani’s Reliance Jio emerged as the top aggressive bidder, it was followed by Bharti Airtel, and then Vodafone Idea. Also, a new entrant, Adani Data Networks is said to have bid for 5G airwaves in the 26 GHz band, unlike the others, to be used for its captive private networks.

Except for Adani Data Networks, bidders were doing intense bidding for 1800 MHz airwaves in the key Uttar Pradesh market at a much higher price than its base price. And the per unit price of 1800 MHz spectrum in UP-East jumped to INR 160.75 crore, which is almost 77% higher than its base price (INR 91 crore/MHz)

Estimated Spectrum Buys-

Experts and analysts estimated the aggregate spectrum buys of the bidders, which means how much they spent on buying 5G spectrum bands-

  • Reliance Jio- upward of INR 84,500 crore.
  • Bharti Airtel- above INR 46,500 crore.
  • Vodafone Idea- pegged over INR 18,500 crore.
  • Adani Data Networks- INR 800-900 crore.

Impact on shares of bidders-

The last day of the auction, that is, today has certainly affected the market of bidders in BSE (Bombay Stock Exchange), shares of companies increased because they are the first to take a step in this 5G world. The shares below are as per Monday (1st August) market of BSE-

  • Reliance Industries- up to 2.3% to INR 2566.80
  • Bharti Airtel- up 1.4% to INR 687.20
  • Vodafone Idea- up 2.5% to INR 8.99
  • Adani Enterprises- up 2.5% to INR 2632.65

As India’s first 5G spectrum auction ends on 1st August 2022, the Indian Government nets a record of over INR 1.5 lakh crore. The tallying is still going on and the government will soon make the official announcement.

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