This is third spectrum auction after former communications minister A. Raja was sacked. First auction was partially successful, while second was total failure.
However, entry of Mukesh Ambani’s RIL has made this auction interesting. If Mukesh Ambani has interest in 900 MHz band in metros, this auction will become every interesting. If RIL wins 900 MHz band auction in metros at the cost of the two incumbent operators, Bharti Airtel and Vodafone will have to change their entire network to 1800 Mhz band. This will create a lot of problem for its customers and the quality of services will suffer as a result.
From initial response, it appears that this auction will continue for weeks. In 2010, auction of 3G spectrum lasted for 34 days, while the auction in November 2012 lasted for 2 days and March. 2013, auction last year lasted for only one day.
In November 2012, bids worth Rs 9,407 crore were received for spectrum worth Rs 28,000 that was offered.
In March 2013, no GSM operators bid at the auction and only CDMA operator Sistema Shyam bought spectrum of about Rs 3,600 crore in eight of the 21 service areas. |