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BWA Auction Winners – Centre mops up Rs.38500 cr, Infotel emerges as pan-India Winner [Full Details]

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The bonanza season is over. !

It precisely took 16 days and 117 rounds of bidding to wrap-up the auction process for Broadband Spectrum Auction (BWA). The Manmohan Singh government is expected to garner Rs.38500 crore from the sale of broadband airwaves.

Rs. 67,719 crore from 3G + Rs.38, 543 (est.) for BWA = Rs.1,06,262 crore

Yes, this is what the exchequer is likely to fetch as revenues from the combined auction process of next generation 3G and broadband airwaves.

The pan-India BWA price stood at a whooping Rs.12848 crore.

After quenching their thirst for the scarce spectrum from the 3G auctions, large telcos have clearly taken a break from the expensive BWA bids in the leading circles of Mumbai and Delhi.

The BWA auction has seen emergence of Infotel and Qualcomm as the leading winners in the premium Mumbai and Delhi circles at bids as high as Rs.2293 crore and 2241 crore respectively.

In fact, what comes as an absolute surprise is Infotel’s triumph as a pan-India winner in all the 22 circles.

BWA-Winners-1 BWA-Winners-2 BWA-Winners-3

On the other hand, Aircel (not Airtel) has emerged as the next big winner with winning bids for 8 circles. However, the company has missed the bus in leading 4 circles of Delhi, Mumbai, Maharashtra and Gujarat.

Bharti Airtel has managed to win bids in Maharashtra, Karnataka, Kolkata and Punjab. While Qualcomm has found favourable response in the key circles of Delhi and Mumbai apart from other two circles like Kerala and Haryana. Tikona triumphs in 5 circles.

Telecom-Operator-Circle-Winners

If one compares the 3G bid prices in leading circles such as Delhi at Rs.3317 crore and Mumbai at Rs.3247 crore, the demand for BWA spectrum in both these circles at Rs.2241 crore and Rs.2293 crore, seems to be at a run-away premium as compared to 3G costs, though bids from both the diverse technologies are not strictly comparable.

In fact, telecom analysts are still ambiguous whether these players should use the BWA spectrum for offering services using WiMax technology platform or TD-LTE. Both the wireless technologies can be deployed on broadband spectrum.

Apparently, scarcity of slots could have led to such high price levels for the BWA airwaves. In the current auction process, two all-Indian broadband licenses are on offer while a third set has been reserved for the state-run firms such as BSNL and MTNL.

Over Rs.1 lakh crore… C/f to the Finance Ministry.

[source]

  1. […] Government had made during 2010. When auction was conducted in 2010, Govt had mopped up Rs. 67,719 crore from 3G and Rs.38, 543 from BWA auction, taking the total tally during that auction to Rs.1,06,262 crore. The 2015 auction has now […]

  2. […] started offering any services and yet their networth is so high. This is because they currently hold Pan-India BWA license which itself is worth nearly Rs. 13,000 […]

  3. Niku Moni Das says

    airtel

  4. Viral says

    Hello Jatin Shah,

    With the bonanza from spectrum airwaves, India’s deficit is likely to come down with a bigger surety. The fiscal deficit for this year is likely seen at a lower 4.5% of GDP than the targetted 5.5%.

  5. jatin shah says

    even after getting this much of money,still Indian government will continue crying for money. and will not invest even a penny for a common man. and this is published figure.a lot of money are already gone into hundreds of pockets..what about that???

  6. Altaf Rahman says

    Guys!! Dont you think, the sequence of events have a strange pattern??
    May be this looks like a Conspiracy theory. But check the events time wise.

    1. Hvas anyone heard of the company called Infotel till yesterday?
    2. Suddenly the unheard of company wins 22 of the 23 sectors.
    3. Immediately RIL and Infotel declare relation. (RIL buys 95% of Infotel)
    4. The buy out terms are RIL will bear teh fee for above payments 12,000+crores.

    My conspiracy theory :
    RIL, Infotel already struck a pact that until Mukhesh and Anil sign the no compitition deal, infotel will act as a front company. (How an unknown company went ahead berserk in bidding with the sole intent of winning at all costs with out some background)
    Now RIL and this company heads come out smiling and declare that what ever Infotel has bid, RIL will pay.
    All the deaql is done already before the auction began and they were waiting to declare the buyout after close of auction.

    1. Jagannath A says

      Captain Obvious. haha!

  7. Chethan says

    Oh My Gosh! huge money

  8. Sammy25 says

    Although 3G has become quite the buzzword, wireless broadband is relatively unpopular. Even in cities like Gurgaon, where Tata had already given a glance of wireless internet to the citizens, its failure does not bode well for this technology. As a personal experience, Tata WiMax connection is cumbersome to install since it needs to be aligned to some antenna and can operate only on some particular floors of the building.
    I guess someone needs to shed some light on the technical aspects and feasibility otherwise it’s very difficult to analyse the implications.

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