Auction Day 3: RJio ups bid quantity in 3300MHz, ICICI Securities

Spectrum auction day-2 concluded and bidding has now spilled to day-3 as operators remained aggressive in 1800MHz band for Uttar Pradesh (east) circle where prices have increased by 7.7% from reserve price, and a few circles in 2100MHz band. RJio has likely increased its bid quantity to 130MHz in 3300MHz band in eight circles. In these circles, Bharti will likely own spectrum below 3400MHz frequency where the ecosystem is relatively weak.

• Spectrum auction day-2 concludes. The auction ended its day-2 after nine rounds. The auction will resume on 28th Jul’22 morning with the 10th round. On closure of round-9, telcos have cumulatively bid for spectrum worth Rs1,490bn (US$19bn) in the first two days of the auction. The incremental spectrum they bid for specifically on day-2, is worth Rs40bn. The additional bids came in 3300MHz, 1800MHz and 2100MHz bands. Aggressive bidding was seen in: 1) 1,800MHz in UP (east) where prices have increased by 7.7% from base price; and 2) 2,100MHz in four circles (Kerala, Haryana, W.B. and Bihar) where prices increased by 0.5%; RJio has likely bid for 130MHz (vs 100MHz on day-1) in 3300MHz band in eight circles including Karnataka, Kerala, U.P. (west), Rajasthan, M.P, H.P, N.E. and J&K. Also, VIL may have bought 800MHz spectrum (up from 400MHz on day-1) in 26GHz in Kerala circle.
• Out of the total bidding worth Rs1,490bn on day-2, 1) Bharti’s potential spectrum payout is estimated at Rs461bn (vs Rs450bn on day-1); 2) RJio’s payout has likely jumped to Rs843bn (vs Rs801bn); and 3) VIL’s payout likely up to Rs184bn.

For complete report, https://www.communicationstoday.co.in/auction-day-2-rjio-ups-bid-quantity-in-3300mhz/

CT Bureau