The goverment has received bids worth Rs 50,000 crore by the end of thirs day of bidding, thanks to tough competition between Mukesh Ambani-owned Reliance, Bharti Airtel and Vodafone. The total bidding amount is much more than what the government expected.

For Bharti and Vodafone, it is important to get the spectrum in 900 Mhz band in metors. Otherwise they will have to redesign their networks and the quality of services will suffer. Reliance Jio wants spectrum in 900 Mhz band to augment its spectrum in 2300 MHz band.

One of the reasons for good response to auction is that the payment terms are very easy. The companies have to pay only 25% of the total amount in advance for 900 Mhz band and 33% for 1800 MHz band.

The government has received bids in all 22 Service Areas in 1800 MHz band and in all 3 Service Areas in 900 MHz band.
 
According to Telecom secretary MF Farooqui, government will get at least Rs 15,000 crore in the current fiscal based on the bids received at the end of third day.
 
Eight companies including Mukesh Ambani's Reliance Jio Infocomm Ltd, Bharti Airtel and Vodafone are participating for two bandwidth slots - 900 MegaHertz and 1,800 MHz in 22 circles.
 
The bidding progressed aggressively for the 900 MHz  being auctioned in just three cities, Delhi, Mumbai and Kolkata. In these circles licences of Bharti and Vodafone will expire in November. 
 
"Besides 900 Mhz band, now demand for 1800 Mhz in many circles also picked up today. We will continue with auction tomorrow," he said.
 
The third round auction that began on February 3 has got good response with revenue surpassing auction held in November 2012 and March 2013.
 
Following the cancellation of 122 licences by Supreme Court in 2012 government has put about 385 megahertz of spectrum for auction in 1800 Mhz band.