Record-Breaking 5G Spectrum Auction: Reliance Jio Leads with Over ₹1.5 Lakh Crore

The highly anticipated 5G spectrum auction concluded on Monday, with bids totaling more than ₹1.5 lakh crore over 40 rounds across seven days. Reliance Jio emerged as the frontrunner in the auction, contributing significantly to the record-breaking figure.

Auction Highlights

Sources indicate that 5G airwaves worth ₹1,50,173 crore have been sold thus far, with the final tally currently being compiled by the government. The auction witnessed a surge in bidding activity on the sixth day, reaching ₹1,50,130 crore after 37 rounds.

Major Players and Bidding Activity

Reliance Jio led the bidding, placing bids exceeding ₹84,500 crore, followed by Airtel with bids valued at over ₹46,500 crore. Vodafone Idea and a unit of Adani Enterprises also participated, with bids totaling around ₹18,500 crore and ₹5,000 crore, respectively.

Intense Competition and Strategic Moves

An intense bidding war unfolded between Jio and Airtel, particularly in the Uttar Pradesh East circle for the 1800MHz band. Industry analysts attribute the significant interest in the auction to the strategic importance of expanding network coverage, particularly in densely populated regions like India.

Implications for 5G Deployment and Infrastructure

Devroop Dhar, Co-founder and board member of Primus Partners, emphasized the auction’s significance in signaling the industry’s readiness to embrace 5G technology. He highlighted the attractiveness of the 700MHz band, crucial for providing extensive 5G coverage, especially in densely populated areas.

Revenue Generation and Future Prospects

The substantial proceeds generated from the auction are expected to bolster government revenues and support future investments in 5G infrastructure. Dhar underscored the need for telecom companies to incentivize customers to upgrade to 5G devices, given the willingness of Indian consumers to pay premium prices for 5G-bundled plans.

Outlook for 5G Rollout

IT Minister Ashwini Vaishnaw expressed optimism about the 5G rollout, anticipating its implementation by October of the current year. The successful auction marks a significant milestone in India’s journey towards 5G deployment and underscores the industry’s commitment to embracing next-generation connectivity.