In-depth evaluation of the Reserve Price of Spectrum in Auction 2022

Band wise and LSA wise reserve price of all the spectrum put to auction in the upcoming spectrum auction.

Estimated reading time: 4 minutes, 28 seconds

The Government of India today initiated the spectrum auction with the issue of Notice Inviting Applications (NIA) to facilitate the rollout of 5G services in India. The Government has put all the available spectrum part of the auction in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.

The total quantum of spectrum put to auction across all spectrum bands is 72097.85 MHz. The 72 GHz of the spectrum to be auctioned will be allotted for a period of 20 years. Let us take a look at the reserve price of spectrum across various bands and LSAs.

In-depth evaluation of the Reserve Price of Spectrum in Auction 2022

600 MHz and 700 MHz Band Reserve Price

Both the spectrum bands i.e 600 MHz and 700 MHz have got an identical reserve price across all LSAs. The reserve price per MHz varies from Rs 15 crore in North East to Rs 509 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 75 crore in North East to Rs 2545 crore in Delhi on a circle-to-circle basis.

If a telecom service provider were to pick up one block (5 MHz) of 600 MHz or 700 MHz bands across all LSAs, it would cost around Rs 19635 crore on base price.

800 MHz Band Reserve Price

The 800 MHz spectrum band’s reserve price per MHz varies from Rs 13 crore in North East to Rs 479 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 16.25 crore in North East to Rs 598.75 crore in Delhi on a circle-to-circle basis.

If a telecom service provider were to pick up one block (1.25 MHz) of the 800 MHz band across all LSAs, it would cost around Rs 4525 crore on base price.

900 MHz Band Reserve Price

The 900 MHz band’s reserve price per MHz varies from Rs 14 crore in North East to Rs 436 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 2.8 crore in North East to Rs 87.2 crore in Delhi on a circle-to-circle basis.

If a telecom service provider were to pick up one block (0.2 MHz) of the 900 MHz band across all LSAs, it would cost around Rs 731.6 crore on base price.

1800 MHz Band Reserve Price

The 1800 MHz band’s reserve price per MHz varies from Rs 8 crore in North East to Rs 270 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 1.6 crore in North East to Rs 54 crore in Delhi on a circle-to-circle basis.

If a telecom service provider were to pick up one block (0.2 MHz) of the 1800 MHz band across all LSAs, it would cost around Rs 423.2 crore on base price.

In-depth evaluation of the Reserve Price of Spectrum in Auction 2022

2100 MHz Band Reserve Price

The 2100 MHz band’s reserve price per MHz varies from Rs 5 crore in North East to Rs 224 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 25 crore in North East to Rs 1120 crore in Delhi on a circle-to-circle basis. Tamil Nadu, Rajasthan, and Uttar Pradesh (East) LSAs don’t have any vacant spectrum in the 2100 MHz band to offer in the upcoming 5G auction.

If a telecom service provider were to pick up one block (5 MHz) in the 2100 MHz band across all LSAs bar the above-mentioned ones, it would cost Rs 7430 crore on base price.

2300 MHz Band Reserve Price

The 2300 MHz band’s reserve price per MHz varies from Rs 32 crore in Kolkata to Rs 104 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 320 crore in Kolkata to Rs 1040 crore in Delhi on a circle-to-circle basis. The spectrum in the 2300 MHz band is only available in Andhra Pradesh, Delhi, Karnataka, Kolkata, Mumbai, and Tamil Nadu LSAs.

If a telecom service provider were to pick up one block (10 MHz) in the 2300 MHz band across all the above-mentioned LSAs, it would cost Rs 4430 crore on base price.

2500 MHz Band Reserve Price

The 2500 MHz band’s reserve price per MHz varies from Rs 2 crore in Jammu & Kashmir to Rs 86 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 20 crore in Jammu & Kashmir to Rs 860 crore in Delhi on a circle-to-circle basis. The spectrum in the 2500 MHz band isn’t available in Assam, Haryana, Kerala, Madhya Pradesh, North East, Odisha, Rajasthan, Uttar Pradesh (East), Uttar Pradesh (West), and West Bengal LSAs.

If a telecom service provider were to pick up one block (10 MHz) in the 2500 MHz band across all the LSAs bar the above-mentioned ones, it would cost Rs 4820 crore on base price.

3300 MHz Band Reserve Price

The 3300 MHz band’s reserve price per MHz varies from Rs 1 crore in Jammu & Kashmir and North East to Rs 40 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 10 crore in Jammu & Kashmir and North East to Rs 400 crore in Delhi on a circle-to-circle basis.

If a telecom service provider were to pick up one block (10 MHz) in the 3300 MHz band across all LSAs, it would cost Rs 3170 crore on base price.

26 GHz Band Reserve Price

The 26 GHz band’s reserve price per MHz varies from Rs 0.03 crore in North East and Jammu & Kashmir to Rs 0.89 crore in Delhi on a circle-to-circle basis. The reserve price per block varies from Rs 1.5 crore in North East and Jammu & Kashmir to Rs 44.5 crore in Delhi on a circle-to-circle basis.

If a telecom service provider were to pick up one block (50 MHz) in the 26 GHz band across all LSAs, it would cost Rs 349.5 crore on base price.

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Avatar of Basil Kannagi Arasu
Basil Kannagi Arasu

Editor-in-chief

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

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Band wise and LSA wise reserve price of all the spectrum put to auction in the upcoming spectrum auction.

In-depth evaluation of the Reserve Price of Spectrum in Auction 2022

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