Spectrum Auction: Pressure mounts on Idea, RCom; Govt raises Rs 94k cr on Day 5

NEW DELHI: The lucrative 900 MHz band continued seeing tremendous demand, with government raking in Rs 94,000 crore on the fifth day of spectrum auction.

Idea Cellular and RCom were seen struggling to save their circles where they face expiry. Prices in five of nine circles, including UP (West), Punjab and Kerala, where Idea’s licences will expire have increased by more than 75% over the reserve price.

UP(W) circle saw continued bidding interest, despite bidding levels topping 200% over the base price.

“Airtel and Vodafone are trying to take away 900 MHz from Idea and RCom, putting them under pressure in circles such as Bihar and Uttar Pradesh (West). If any of them lose in these circles, their spectrum, subscribers and revenue potentially go to a rival, altering the market scenario dramatically,” media reports said.

At the same time, muted interest was seen in 2100 band (3G) due to higher prices and limited spectrum put up for auctions.

The government is likely to fetch more than its expectations of 1 lakh crore from the spectrum auctions as operators are bidding aggressively to retain airwaves in the circles to continue services.

"There is still spectrum, which is yet to be sold," the government said in a statement late Monday.

The total spectrum put to auction is 103.75 MHz in 800 MHz band, 177.8 MHz in 900 MHz band and 99.2 MHz in 1,800 MHz band and 5 MHz in 2100 MHz (3G).