In-depth evaluation of the Reserve Price of Spectrum in Auction 2021

The list of final bidders will be out next Monday followed by mock auctions and finally the commencementof the Spectrum Auction on Monday 1st March 2021.

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By Basil Kannagi Arasu

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The much awaited Spectrum Auction 2021 is just a fortnight away. The list of final bidders will be out next Monday followed by mock auctions and finally the commencementof the Spectrum Auction on Monday 1st March 2021. Let us take a look at how much telecom operators need to spend to get a block of spectrum across spectrum bands in various telecom circles.

We already covered the minimum and maximum quantity of spectrum operators can bid for in Auction 2021 depending upon on spectrum bands and whether an operator is a new entrant or an existing operator in a specific spectrum band.

Each spectrum block in each LSA is assigned a specific number of Eligibility Points based on the Reserve Price of spectrum in the particular LSA in the respective band. The eligibility to bid is defined by the EMD deposited by the bidder. The initial Eligibility Points for each bidder is determined by the amount of EMD submitted to the Government with bidders making small earnest money deposit getting lower levels of initial eligibility. The combination of the EMD of the number of blocks in the selected LSAs and the Eligibility points at a particular round decide the ability to submit a bid for respective bidders.

700 MHz, 800 MHz, 900 MHz, and 1800 MHz Band Reserve Price Auction 2021

700 MHz Band Reserve Price

First up is the much-coveted 700 MHz spectrum band which could potentially see zero bidders similar to the Spectrum Auction 2016. The reserve price per block varies from Rs 30 crore in North East to Rs 3175 crore in Delhi on a circle to circle basis.

Delhi LSA followed by Mumbai and Maharashtra are among the top 3 circles with the highest reserve price per block. The EMD per block varies from Rs 3 crore in North East to Rs 480 crore in Delhi on a circle to circle basis.

If Reliance Jio were to pick up one block of 700 MHz spectrum across all telecom circles it would cost around Rs 33,000 crore on base price.

850 MHz Band Reserve Price

Next up is the 850 MHz band wherein Reliance Jio’s spectrum holdings are expiring across multiple circles. The reserve price per block varies from Rs 18.75 crore on North East, Jammu & Kashmir to Rs 908.75 crore in Mumbai on a circle to circle basis.

EMD per block varies from Rs 3 crore in North East, Himachal Pradesh, and Jammu & Kashmir to Rs 120 core in Delhi and Mumbai on a circle to circle basis.

900 MHz Band Reserve Price

The reserve price per block varies from Rs 4.6 crore in North East to Rs 138.2 crore in Mumbai on a circle to circle basis. EMD per block varies from Rs 0.5 crore in North East to Rs 15 crore in Mumbai on a circle to circle basis.

1800 MHz Band Reserve Price

The reserve price per block varies from Rs 3.4 crore in Jammu & Kashmir to Rs 112.2 crore in Mumbai on a circle to circle basis. EMD per bock varies from Rs 0.5 crore in Odisha to Rs 15 crore in Mumbai on a circle to circle basis.

2100 MHz, 2300 MHz, 2500 MHz Band Reserve Price Auction 2021

2100 MHz Band Reserve Price

The reserve price per block varies from Rs 30 crore in North East to Rs 3175 in Delhi on a circle to circle basis. EMD per block varies from Rs 3 crore in North East to Rs 480 crore in Delhi on a circle to circle basis.

2300 MHz Band Reserve Price

The reserve price per block varies from Rs 10 crore in North East to Rs 1670 crore in Mumbai on a circle to circle basis. EMD per block varies from Rs 1 crore in North East to Rs 240 crore in Mumbai on a circle to circle basis.

2500 MHz Band Reserve Price

The reserve price per block varies from Rs 10 crore in Jammu & Kashmir to Rs 1670 crore in Mumbai on a circle to circle basis. Spectrum put to auction in this spectrum band is limited to certain LSAs only compared to other spectrum bands wherein the majority of LSAs have something to offer.

EMD per block varies from Rs 1 crore in Jammu & Kashmir to Rs 240 crore in Mumbai on a circle to circle basis.

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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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The much awaited Spectrum Auction 2021 is just a fortnight away. The list of final bidders will out next Monday followed by mock auctions and finally the start of the Spectrum Auction next to next Monday on...

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