A bird’s eye view of the change in Reserve Price of Spectrum put to auction from 2016-2022 Spectrum Auction

An in depth evaluation of the changing reserve price of spectrum put to sale in spectrum auction in the last few years.

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By Basil Kannagi Arasu

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The Department of Telecommunications (DoT) yesterday released the Notice Inviting Applications (NIA) for Spectrum Auction 2022 which is set to be held next month. The spectrum auction will see a total of 72 GHz spectrum put to auction across 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands.

In this article, the reserve price of spectrum put up for sale from the 2016-2022 spectrum auction is compared for analysis. The analysis excludes 600 MHz, 3300 MHz, and 26 GHz spectrum bands which are being put to sale via auction for the first time.

700 MHz Band

A bird's eye view of the change in Reserve Price of Spectrum put to auction from 2016-2022 Spectrum Auction

The 700 MHz spectrum band went unsold in the past two auctions. There has been a continuous decrease in the quantum of spectrum put to auction with only 25 MHz put to auction in the upcoming auction whereas the 2016 auction saw 35 MHz put to auction.

In the 2016 auction, the reserve price per MHz was as high as Rs 1595 crore in Delhi LSA and as low as Rs 44 crore in North East LSA. The reserve price per block in the same auction was as high as Rs 7975 crore in Delhi LSA and as low as Rs 220 crore in North East.

In the 2021 auction, the reserve price per MHz was as high as Rs 1122 crore in Mumbai LSA and as low as Rs 34 crore in North East LSA. The reserve price per block in the same auction was as high as Rs 5610 crore in Mumbai LSA and as low as Rs 170 crore in North East LSA.

The 2021 auction saw a reduction in reserve price per MHz as high as Rs 701 crore or 77.89% in Tamil Nadu LSA and as low as Rs 10 crore or 22.73% in North East LSA. The reduction in reserve price per block was as high as Rs 3505 crore or 77.89% in Tamil Nadu LSA and as low as Rs 50 crore or 22.73% in North East LSA.

In the 2022 auction, the reserve price per MHz is as high as Rs 509 crore in Delhi LSA and as low as Rs 15 crore in North East LSA. The reserve price per block in the same auction is as high as Rs 2545 crore in Delhi LSA and as low as Rs Rs 75 crore in North East LSA.

The 2022 auction has a reduction in reserve price per MHz as high as Rs 652 crore or 58.11% in Mumbai LSA and as low as Rs 3 crore or 2.86% in West Bengal LSA. On the flip side, the increase in reserve price per MHz is as high as Rs 54 crore or 27.14% in Tamil Nadu LSA and as low as Rs 1 crore or 0.46% in Karnataka LSA.

The reduction in reserve price per block is as high as Rs 3260 crore or 58.11% in Mumbai LSA and as low as Rs 15 crore or 2.86% in West Bengal LSA. On the flip side, the increase in reserve price per block is as high as Rs 270 crore or 27.14% in Tamil Nadu LSA and as low as Rs 5 crore or 0.46% in Karnataka LSA.

800 MHz Band

A bird's eye view of the change in Reserve Price of Spectrum put to auction from 2016-2022 Spectrum Auction

In the 2016 auction, the reserve price per MHz was as high as Rs 848 crore in Delhi LSA and as low as Rs 24 crore in Himachal Pradesh LSA. The reserve price per block was as high as Rs 1060 crore in Delhi LSA and as low as Rs 30 crore in Himachal Pradesh LSA.

In the 2021 auction, the reserve price per MHz was as high as Rs 727 crore in Mumbai LSA and as low as Rs 15 crore in Jammu & Kashmir LSA. The reserve price per block was as high as Rs 908.8 crore in Mumbai LSA and as low as Rs 18.75 crore in Jammu & Kashmir LSA.

The 2021 auction saw a reduction in reserve price per MHz as high as Rs 289 crore or 36.17% in Maharashtra LSA and as low as Rs 8 crore or 9.76% in West Bengal LSA. On the other hand, there was an increase in reserve price per MHz as high as Rs 100 crore or 35.09% in Gujarat LSA and as low as Rs 32 crore or 14.61% in Uttar Pradesh (East LSA).

The auction saw a reduction in reserve price per block as high as Rs 361.25 crore or 36.17% in Maharashtra LSA and as low as Rs 10 crore or 9.76% in West Bengal LSA. On the other hand, there was an increase in reserve price per MHz as high as Rs 125 crore or 35.09% in Gujarat LSA and as low as Rs 40 crore or 14.61% in Uttar Pradesh LSA.

The 2022 auction has a reduction in reserve price per MHz as high as Rs 259 crore or 35.63% in Mumbai LSA and as low as Rs 1 crore or 6.67% in Jammu & Kashmir LSA. On the flip side, the increase in reserve price per MHz is as high as Rs 51 crore or 29.31% in Tamil Nadu LSA and as low as Rs 5 crore or 8.77% in Haryana LSA.

The auction saw a reduction in reserve price per block as high as Rs 323.75 crore or 35.63% in Mumbai LSA and as low as Rs 1.25 crore or 6.67% in Jammu & Kashmir LSA. On the flip side, the increase in reserve price per MHz is as high as Rs 63.75 crore or 29.81% in Tamil Nadu LSA and as low as Rs 6.25 crore or 8.77% in Haryana LSA.

900 MHz Band

A bird's eye view of the change in Reserve Price of Spectrum put to auction from 2016-2022 Spectrum Auction

In the 2016 auction, the reserve price per MHz was as high as Rs 776 crore in Uttar Pradesh (East) LSA and as low as Rs 444 crore in Bihar LSA. The reserve price per block was as high as Rs 155.2 crore in Uttar Pradesh (East) LSA and as low as Rs 88.8 crore in Bihar LSA.

In the 2021 auction, the reserve price per MHz was as high as Rs 691 crore in Mumbai LSA and as low as Rs 23 crore in North East LSA. The reserve price per block was as high as Rs 138.2 crore in Mumbai LSA and as low as Rs 4.6 crore in Bihar LSA.

The 2021 auction saw a decrease in reserve price per MHz as high as Rs 528 crore or 71.45% in Uttar Pradesh (West) LSA and as low as Rs 243 crore or 54.73% in Bihar LSA. The decrease in reserve price per block was as high as Rs 105.6 crore or 71.45% in Uttar Pradesh (West) LSA and as low as Rs 48.6 crore or 54.73% in Bihar LSA.

In the 2022 auction, the reserve price per MHz is high as Rs 436 crore in Delhi LSA and as low as Rs 14 crore in North East LSA. The reserve price block is as high as Rs 87.2 crore in Delhi LSA and as low as Rs 2.8 crore in North East LSA.

The 2022 auction has a decrease in reserve price per MHz as high as Rs 302 crore or 43.7% in Mumbai LSA and as low as Rs 9 crore or 39.13% in North East LSA. On the flip side, the increase in reserve price per MHz is as high as Rs 26 crore or 6.97% in Gujarat LSA and as low as Rs 14 crore or 7.04% in Kerala LSA.

The decrease in reserve price per block is as high as Rs 60.4 crore or 43.7% in Mumbai LSA and as low as Rs 1.8 crore or 39.13% in North East LSA. On the flip side, the increase in reserve price per block is as high as Rs 5.2 crore or 6.97% in Gujarat LSA and as low as Rs 2.8 crore or 7.04% in Kerala LSA.

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Avatar of Basil Kannagi Arasu

Basil Kannagi Arasu

News Reporter

1659 articles published
Basil keeps an eye on the latest happenings in the Telecom sector. You can find him streaming the Premier League, which he started watching in 2013, in his free time.

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An in depth evaluation of the changing reserve price of spectrum put to sale in spectrum auction in the last few years.

A bird’s eye view of the change in Reserve Price of Spectrum put to auction from 2016-2022 Spectrum Auction

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