Spectrum auction February 2014: Bids total Rs. 50,000 crore by end of day three

"The government received cumulative bids worth around Rs.50,000 crores at the end of the third day. Going forward, we expect bidding to move in a very robust way," Telecom Secretary M.F. Farooqui told IANS.

Eight mobile phone service providers are participating in the auction for 46MHz in 900MHz band and 385MHz in 1800 MHz band.

At the end of the third day of bidding, data released by the department of telecom showed that the 1800MHz band received bids in all 22 circles and the 900MHz band received bids in all three circles which are up for auction.

(Also see: Spectrum auction February 2014: 17 rounds completed on day three, bidding continues)

Highest demand for 900MHz was seen from Delhi circle and in 1800MHz highest bid was seen in Assam and West Bengal circles.

The eight mobile phone service providers participating in the auction are Reliance Communications, Reliance Jio, Bharti Airtel, Vodafone, Telewings, Aircel, Tata Teleservices and Idea Cellular.

In the 900MHz, Mumbai price shot up 71.7 percent more than the reserve price, Delhi went up by 59.5 percent and Kolkata by 54.2 percent. The number of blocks that are on offer in Mumbai is 16, Delhi 16 and Kolkata 14.

Bharti Airtel's 20-year licence is going to expire in Delhi and Kolkata circles and Vodafone India's 20-year licences in Delhi, Mumbai and Kolkata circles are getting over in November this year.

(Also see: Vodafone seeks licence extension for Delhi, Mumbai and Kolkata)

The total spectrum on offer is 46MHz in 900MHz band (only Delhi, Mumbai and Kolkata) and 385MHz in 1800 MHz band (all 22 circles) simultaneously. The government targeted to mop up Rs.40,874.50 crores from spectrum auction in 2013-14.

The auctioning of the airwaves is done to obtain a market determined price of the spectrum. This auction does not have any last date. It will go on every week from Monday to Saturday from 9 a.m. to 7.30 p.m. till the time telecom service providers keep bidding.

The service providers will bid using fixed Internet Protocols (IP) as dynamic IP addresses are not allowed.

The objectives of the auctions are to obtain a market determined price of spectrum in 1800MHz and 900MHz bands through a transparent process; ensure efficient use of spectrum and avoid hoarding; stimulate competition in the sector; promote rollout of the respective services and maximise revenue proceeds from the auctions within the set parameters.

Times Internet Limited and e-Procurement Technologies Limited are advising the government on the auction. Administration of the e-auction is the responsibility of e-Procurement Technologies Limited.