The Mukesh Ambani-promoted Reliance Jio Infocomm will be able to launch 4G services on FD-LTE technology in 14 telecom circles where it acquired spectrum in the 1800 MHz band in a fierce battle today.
Reliance Jio Infocomm already has nationwide BWA (broadband wireless access) license to launch 4G on TD-LTE technology in 22 circles.
FD-LTE is more advanced and developed than TD-LTE, which is used by telecom operators such as China Mobile, Bharti Airtel, etc.
In the 1800 MHz band, Reliance Jio Infocomm acquired spectrum in telecom circles such as West Bengal, Tamil Nadu, Orissa, North East, Mumbai, Maharashtra, Madhya Pradesh, Kolkata, Kerala, Karnataka, Gujarat, Delhi, Assam and Andhra Pradesh, DoT website suggests.
Vodafone and Bharti Airtel compete to bag spectrum in Delhi, Kolkata and Mumbai circles in the 900 MHz band. Reliance Jio Infocomm did not buy spectrum in Delhi, Kolkata and Mumbai circles in the 900 MHz band. It is believed that the presence of Reliance Jio escalated the price of 900 MHz band.
Earlier, Airtel India CEO Gopal Vittal said there was an artificial spectrum bidding in the 900 MHz band indicating that the presence of big players such as Reliance Jio Infocomm escalated the bid price.
Airtel bought spectrum worth around Rs 18,530 crore.
Vodafone has spent a total of approximately Rs 19,600 crore in this auction of which around Rs 5,600 crore will be payable in this financial year.
Hemant Joshi, partner, Deloitte Haskins & Sells, said: “The incumbent operators, whose licenses are expiring at the end of this year were having no choice but to bid and win spectrum to continue providing services in the high margin densely populated metros. The prices paid by the operators in winning back spectrum they were holding is substantially higher than the amounts they originally paid and also the reserve price set by the govt.”
The India government today received bids worth over Rs 60,000 crore from the telecom spectrum auction which ended on 10th day on Thursday. The auction for 900 MHz and 1800 MHz bands saw strong contest for the radiowaves among eight telecom companies, with the bidding stretching to 68 rounds.
“The overall outcome of the higher input cost should have been increase in tariff however due to intense competition, all the increase in cost is unlikely to get passed on to the consumer. The already highly leveraged balance sheets of the telecoms would get more leveraged and operators are also likely to face bottom line pressure,” Joshi added.
