Round 1 of 5G auctions: Bid amount at Rs 1.45 trillion

Telecom operators committed a total of Rs 1.45 trillion for spectrum in 5G and other bands on the first day of auctions. However, the amount did not exceed the reserve price in any of the bands. Telecom minister Ashwini Vaishnaw said that the first-day proceeds surpassed the government’s internal estimates. He also said that the amount garnered is the highest so far, crossing the Rs 1.09 trillion received in the 2015 auctions.

However, the total quantum of spectrum put up for auctions in 2015 at reserve price was valued at Rs 80,000 crore. So, the return for the government was higher as it exceeded the base price. In comparison, currently, the total value of spectrum on sale is Rs 4.3 trillion and going by the bidding activity, which was at 90%, the maximum jump in value on Wednesday would be around 10%. So, not only all the sale will be at reserve price but a large quantum of spectrum will also remain unsold.