In-depth evaluation of the Minimum and Maximum Spectrum an operator can bid for in Auction 2021

[OnlyTech]

With the Spectrum auction slated for 1st of March 2021, we need to have a basic understanding of Telecom Airwaves and how much or how little of it an operator can hold in a particular circle. For...

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[saketk11]

Esmail bhai, Great article and very easy to understand.

I was wiating for this and You made it first.

I found only clash is for 850Mhz between airtel and jio in GUJRAT circle.

now my question is as per NIA if there is zero demand in any of clock round during auction, then price will be incresed by 0.5% of previous bid price.

so how does bid prices stabalize. let us consider Gujrat circle will witness demand of 6.25Mhz in first round , then base price will increse by 0.5%, then does that remain stable and final price of winning, if there wont be any extra bid in upcoming clock round?

 

[Esmail]

Esmail bhai, Great article and very easy to understand.

Thank you bro

I was wiating for this and You made it first.

Don't I always?

I found only clash is for 850Mhz between airtel and jio in GUJRAT circle.

Jio could either bid for all 5 blocks to make a chunk of 15 MHz or go for 1 block to make a chunk of 10 MHz and leave 4 blocks for Airtel to make a block of 5 MHz.

so how does bid prices stabalize. let us consider Gujrat circle will witness demand of 6.25Mhz in first round , then base price will increse by 0.5%, then does that remain stable and final price of winning, if there wont be any extra bid in upcoming clock round?

If the demand is the same as the availability (6.25 MHz in this case) and there are no further bids for this spectrum in the upcoming rounds then the winning price will be the same at which the bids were placed with no increments whatsoever. But consider a scenario where Airtel bids for 4 blocks and Jio bids for 1 block and for the subsequent round the price is increased by 0.5% and at this new price Vi bids for 3 blocks and both Airtel and Jio remain silent then Vi will be allotted the 3 blocks at 0.5% higher price, Airtel will get 2 blocks at the original price and Jio will not get any blocks.

 

[saketk11]

for the subsequent round the price is increased by 0.5%

total block are 5 for gujrat(for that matter any circle) and demand is also 5, airtel bid 4, and jio bid 1, then u said no increment.

 

[Esmail]

total block are 5 for gujrat(for that matter any circle) and demand is also 5, airtel bid 4, and jio bid 1, then u said no increment.

For the next round there will be a 0.5% increment in case jio wants to increase from 1 to 3 or if vi wants to also bid. But if no bids are received in the next round then the original bid price at which Airtel had bid for 4 and Jio for 1 will apply.

 

[saketk11]

@Esmail bhai,

DOT has published Spectrum holding records