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Reliance Jio Infocomm Ltd has deposited ₹3,000 crore as earnest money for the upcoming spectrum auction, nearly three times the amount submitted by rival Bharti Airtel Ltd, according to the Department of Telecommunications (DoT).
Bharti Airtel and Vodafone Idea have deposited ₹1,050 crore and ₹300 crore, respectively. Notably, in the previous spectrum auction, the telecom department received an earnest money deposit (EMD) of ₹21,800 crore. During India’s first 5G auction in July 2022, the government successfully garnered over ₹1.5 lakh crore in revenue. Despite none of its licenses coming up for renewal, Jio has deposited the maximum amount, whereas Airtel and Vodafone Idea need to renew airwaves in certain circles in the upcoming auction on June 6. Airtel, led by Sunil Mittal, needs to renew airwaves in J&K, Odisha, Bihar, UP (East), West Bengal, and Assam. Vodafone Idea, which recently raised funds through an FPO, needs to renew the spectrum in West Bengal and UP West circles.
Successful bidders will receive spectrum rights for 20 years, with payments allowed in 20 equal annual installments.
The department has allocated the highest 21,363 eligibility points to Jio for the upcoming auction, followed by 7,613 to Airtel and 2,200 to Vi. All telcos can bid in any band in any service area based on their eligibility points and spectrum caps.
According to information on the DoT website, Jio had a net worth of ₹2.31 lakh crore as of December 31, 2023. As of May 6, 2024, Airtel’s net worth was ₹86,260 crore, while Vi’s net worth was a negative ₹1.17 lakh crore as of May 3, 2024.
The telecom department will auction spectrum worth ₹93,000 crore on June 6, including bands in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz ranges.
