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India’s 2G Auction Final Result Highlights: Govt Mops Up Rs. 61162 Crores

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2G Auction 2014 – Final Provisional Results & Highlights

  • On the 10th and the final day of the 2G Auctions, 68 rounds of bids were completed
  • All 3 circles in 900 MHz remained the same on the final day.
  • 11 circles did not see any increase in the bid prices through the auction
  • In revenue terms, Delhi garnered the maximum revenue of 11855.36 crores in 900 MHz and 7644 crores in 1800 MHz band
  • Mumbai garnered second best revenue with 9009.44 crores in 900 MHz and 6364.80 crores in 1800 MHz band
  • Mumbai and Delhi alone accounted for 34,873.60 crore rupees revenue or 57 percent of the total
  • Govt has mopped a total of Rs. 61162.22 crores from 2014 2G Auctions
  • 3G auctions held in 2010 garnered shade lower than Rs. 70k crores. Keeping that in mind, 2G auction definitely garnered premium pricing.

2G Auction Final Results (provisional)

2G Auction Winning Bids 900 MHz

2G Auction Winning Bids 1800 MHz

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2G Auction – Day 9 Highlights

  • At the end of 9th day of auction, 63 rounds of 2G auction has been completed
  • All 3 circles in 900 MHz band (Mumbai, Delhi, Kolkata) did not see any rise in bid prices for second straight day
  • 6 circles in 1800 MHz band saw higher bid prices – Those circles were Delhi, Andhra Pradesh, Assam, Madhya Pradesh, Maharashtra and Punjab
  • Assam & Madhya Pradesh are the only 2 circles who have excess demand
  • Assam bid price is now nearly 4 times higher (6.95 crore) than its base price (1.40 crore)
  • In 1800 MHz band, 13 out of 22 circles now have higher prices compared to their base price.
  • According to our calculations, at a end of day 9 of 2G auctions, center is expected to mop up 67817 crore cumulatively.
  • If provisional winning bids are considered, the total comes to around 61k crore.
  • The 2G auctions prices are now in the touching distance of 3G auction prices and given the way things are going, prices may even surpass them!
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2G Auction – Day 8 Highlights

  • A total of 56 rounds have been completed at the end of 8th Day of 2G Auctions
  • 900 MHz demand seems to be over as it sees no increase in bid prices
  • Delhi, Mumbai & Kolkata (900 MHz) see no higher bids
  • Mumbai bid prices have been same for past 5 days indicating that Mumbai circle will not see any more bids
  • Only 3 circles (Assam, Delhi & Maharashtra) in 1800 MHz band see bid price rise
  • Assam now has 338.57% higher bid price compared to its base price.
  • As per our calculations, center is now expected to mop up 66,400 crore rupees from the 2G auctions, about 50% higher than 40k crore they had estimated.
  • The cumulative price will be lower (about 61k crore) if provisional winning bids are considered.
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2G Auction – Day 7 Highlights

  • 7 days and 49 rounds of 2G Auction have been completed
  • Both 900 MHz band and 1800 MHz band witnessed higher prices for some circles.
  • Mumbai (900 MHz) has not seen any price rise for straight 5th day and Kolkata did not see any price rise on Day 7
  • Delhi bid price per block increased marginally to 748.36 crore. The price is 107.88 percent higher than the base price.
  • Assam (1800 MHz) continued to see strong demand with their price reaching 5.39 crore per block. 285 percent higher than the base price
  • Maharashtra (1800 MHz) also saw their bid prices go higher.
  • 11 circles have not seen any price rise.
  • UP (West), Maharashtra, Delhi, Assam and Gujarat have seen over 50% bid price rise.
  • 5 circles now have 2G bids that are even higher than 3G bid pricing (source)
  • According to our calculations, cumulative bid price has now reached 65141 crore rupees. If provisional winning bids are considered, the total price will come around Rs. 60k crore.
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2G Auction – Day 6 Highlights

  • Total of 42 rounds of Auction completed at the end of 5th day.
  • Mumbai (900 MHz) has not seen any price rise for straight 4th day.
  • Kolkata (900 MHz) sees higher bids and has now reached 57.26 percent of base price
  • Delhi sees significantly higher bids. The base price has doubled to 740.96 crore per block as compared to base price of 360 crore.
  • Even in 1800 MHz band, Delhi is seeing much higher bids. The price has reached 44.93 percent higher from the base price.
  • Assam has seen highest bids of all the circles. Their bid price has tripled to 4.22 crore as against the base price of 1.40 crore
  • 11 states are still at the base price as they have not attracted any bids for last 6 days
  • Gujarat and Maharashtra are 2 circles in 1800 MHz bad that have seen over 50 percent bid price rise.
  • As per our calculations, the total bids currently total to 63492 crore rupees. The total will come to around 57000 crore, if provisional winning bids are considered.
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2G Auction – Day 5 Highlights

  • Total of 35 rounds of Auction completed at the end of 5th day.
  • Mumbai (900 MHz) does not see any price rise for straight 3rd day, same as Kolkata
  • Delhi sees significant rise (90 percent ) in the base price.
  • Assam (1800 MHz) price has now increased over 150 percent
  • 11 states still have not seen any higher bids
  • According to our calculations, center has amassed bids of over 61,400 crore rupees.
  • If provisional winning price is taken into consideration, the total bids are worth around 55,000 crore.
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2G Auction – Day 4 Highlights

  • Total of 28 rounds were completed at the end of 4rd day of 2G Auctions
  • Mumbai & Kolkata did not see any higher bids on Day 4 in 900 MHz band
  • Delhi bid (in 900 MHz band) increased to 79.34 percent from 59.47 percent on previous day
  • In 1800 MHz, 10 circles out of 22 had higher bids, same as the Day 3
  • Assam circle saw steep hike in their bid price to 2.51 crore, a rise of 79.29 percentAs per our calculations Government has raised 59484 crore (37,330 cr for 1800 MHz &  22154 cr for 900 MHz) from this auction as of Day 4. They had a target of raising Rs. 40k crore! This number is calculated based on current prices multiplied by number of blocks available for each circle. The price may be slightly lower if current provisional winning bid is calculated.
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2G Auction – Day 3 Highlights

  • Total of 21 rounds were completed at the end of 3rd day of 2G Auctions
  • All 3 circles in 900 MHz band improved on their bid price.
  • Mumbai currently leads with 73.39 percent rise in their base price
  • In 1800 MHz, 10 out of 22 circles have now seen higher bids
  • Gujarat and Assam lead among states with 39.4% and 33.6% higher bids respectively
  • According to various media reports, total bids have now crossed Rs. 50,000 crore. [We have not calculated the amount as yet, and will do it at the end of Auction]
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2G Auction – Day 2 Highlights

  • Day 2 sees completion of 14 rounds of bidding
  • All 3 circles in 900 MHz band further extended the price bids
  • 8 circles out of 22 circles in 1800 MHz band witness higher bids.
  • Mumbai (900 MHz) remains the most sought after circle with 68.31 percent price rise
  • Kolkata and Delhi both witness over 50% rise in their base price
  • On day 2 Maharashtra and Delhi saw marginally higher bids in 1800 MHz band
  • Cumulative Bids have now reached INR 40,800 crore [Source]
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2G Auction – Day 1 Highlights

  • A total of 7 rounds were completed of the first day of the Auction
  • All 3 circles in 900 MHz band saw higher bids
  • 6 circles out of 22 circles in 1800 MHz bad saw higher bids.
  • Mumbai circle (900 MHz) saw maximum bid price increase of 44.28%
  • Bihar witnessed maximum price rise of 7.97% in 1800 MHz circle.

Earlier…

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The much talked about and much awaited 2G spectrum auction is now underway. It started at 9am (today, 3rd Feb 2014), and this very much is a crucial auction for both the government as well as the telecom operators in India.

The previous 2 attempts of Govt. to auction two airwave bands (900 MHz and 1800 MHz) have been unsuccessful – They expect that this time around they will be successful, and raise close to USD 2 billion. The auction is due to Supreme Court’s order in 2G case in Feb 2012, where 122 licenses were cancelled and freed. The previous 2 auctions conducted in Nov 2012 and March 2013 lasted only two days and one day respectively and were unable to meet the minimum reserve price.

On the other hand, these airwaves have become crucial for Indian Telcos, especially for 2 biggest operators in India Bharti Airtel and Vodafone as their licenses are expiring later this year for some circles. For Vodafone, it is important to get spectrum for Delhi, Mumbai and Kolkata to keep offering their 2G services. On the other hand, Bharti Airtel finds themselves in similar situation in Delhi and Mumbai.

Both the operators will obviously have to bid the highest to get licenses in those circles.

Another smaller operator, Loop mobile, which operates only in Mumbai also needs to get licenses for Mumbai to continue operations as their license will also expire in November this year.

Who are bidding

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5 Things You Should Know About This Spectrum Auction

  1. This is the 3rd attempt by Government to auction off the spectrum after 2 failed attempts in November 2012 and March 2013. Operators had complained that base prices were too high for them to bid for airwaves.
  2. Reliance Jio Infocomm is expected to play a major role in this spectrum auction, as they have have been granted permission to offer Pan-India basic telephony services last year (with some riders).
  3. The reserve price for 1800 MHz Pan-India license is INR 1765 crore, 26 percent lower than March 2013 auction.
  4. The reserve price for 900 MHz is INR 360 crore per MHz for Delhi, INR 328 crore for Mumbai and INR 125 crore for Kolkata. This price is 53% lower than March 2013 auction.
  5. Indian government set a target of mopping up INR 40,874.50 crore for this fiscal from spectrum, including the auction amount, one-time spectrum charge and annual regular licence fee. This is expected to make a huge positive impact on Fiscal deficit.

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