Goldman Sachs Global Investment Research has released three important charts that show spectrum auction 2016.
The first chart indicates the quantity of spectrum available in 7 bands and the quantity of spectrum sold out during the 2016 spectrum auction.
India has sold 30 MHz spectrum out of 148 MHz in 800 MHz, 350 MHz out of 443 MHz in 1800 MHz, 170 MHz out of 720 MHz in 2100 MHz, the entire 320 MHz in 2300 MHz and 370 MHz out of 600 MHz in 2500 MHz spectrum band. There was nil demand for 700 MHz and 900 MHz spectrum bands.
Bharti Airtel has acquired 173.8 Mhz spectrum across 1800/2100/2300 MHz bands for a total consideration of Rs 14,244 crore.
Vodafone India has acquired spectrum — 2 x 82.6 MHz FDD and 200 MHz TDD spectrum across the 1800, 2100 and 2500 MHz bands — for INR 202.8 billion or €2.74 billion.
Reliance Jio has acquired 269.2 MHz spectrum for Rs 13,672 crore.
Idea Cellular has acquired 349.2 MHz of spectrum at an aggregate bid value of Rs 12,798 crore. Idea has acquired additional 2×74.6 MHz spectrum in FDD technology on 1800 and 2100 bands, and 200 MHz of capacity spectrum in TDD technology on 2300 and 2500 bands.
The second and third charts show 3G and 4G spectrum held by key telecom operators in Indian telecom circles.
Bharti Airtel has 3G spectrum presence in 22 telecom circles. Vodafone has 3G spectrum presence in 17 circles and Idea Cellular has 3G spectrum in 15 circles. Reliance Jio Infocomm does not have 3G spectrum in India.
According to the above chart, both Bharti Airtel and Reliance Jio Infocomm have 4G spectrum in 22 circles. Vodafone has 4G spectrum in 17 telecom circles, while Idea Cellular has 4G presence in 20 telecom circles.
Prashant Singhal, global telecom leader, EY, on spectrum auction
After 2012 and 2013; the 2016 telecoms spectrum auction is the third instance of a tepid response by the industry largely owing to high reserve prices.
With 60 percent airwaves witnessing no bidding, the muted response is indicative of Indian mobile operators’ reluctance to invest heavily at current market prices. The data play is on the rise, and traction in bands vis-a-vis 1800 MHz, 2300 MHz, including the under developed 2500 MHz, which will be used for deployment of 4G; is an indication that operators are filling their network coverage gaps for a wider footprint and augmenting capacities.
Intent to increase the 4G play exists, however, current valuations do not justify the expected rate of returns due to which bidding was restricted to very low premiums over base price. So long as the reserve prices are outside the range of the previously discovered market prices, the outcome was expected to be on similar lines.
