5G spectrum auctions: Big money is in but no bidding war yet

• Day 1 of 5G spectrum auctions has already surpassed analyst estimates even as telcos and Adani remained less aggressive.
• Despite the good demand, analysts say the competition was low and bids were at reserve prices.
• Here’s the 5G spectrum auctions picture after the first day of bidding.

The much anticipated 5G spectrum auctions in India have commenced, with Jio, Airtel and Vodafone Idea, along with India’s richest man Gautam Adani – having submitted bids worth ₹1.45 lakh crore already, more than twice of what analysts expected.

However, analysts suggest that the bids were less aggressive despite the good demand, and quotes were made at reserve prices – along expected lines.

According to reports, the three telcos and Gautam Adani have placed bids for spectrum in bands which support different specs like large coverage, high-speed and low-latency.


“After round 4 yesterday, bids have been placed for 40% of the spectrum available which is in line with the expectations. Apart from the mid band (3300 Mhz) and the mm wave (26Ghz) required for 5G roll-out, the 700 Mhz has been sought after to catapult the rural broadband penetration in the country,” said Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India.

Here’s what Jio, Airtel, Vi and Adani are bidding for

While Mukesh Ambani’s Jio and Sunil Mittal’s Airtel have bid for spectrum spread across a wide range of bands, Vodafone Idea’s bids were limited to specific bands like 3300MHz and 26GHz, apart from a few other bands.

Adani Data Networks, on the other hand, seems to have focused its bids primarily in the 26GHz band and in select circles where its ports and other businesses are present. Unsurprisingly, Adani bid the most in the Gujarat circle where its Mundra port is located. This suggests that for now, Adani is focusing on spectrum for its business needs.


According to Morgan Stanley, there was no demand yet in the 600MHz and 800MHz bands. The 900MHz band (where Bharti Airtel and Vodafone Idea have a footprint) showed demand in two out of 21 circles (Assam and Jammu & Kashmir), with 12% of total available spectrum being won.

The investment bank said that unlike the previous two auctions (2016, 2021), where no interest was seen in the 700MHz band, this round of spectrum auctions saw demand across 22 circles with 40% of the total available spectrum being won.

In the earlier round, telcos did not bid for spectrum in the 700MHz as the reserve price was very high – but Jio’s strategy this time around is to solve its network quality concerns, which explains why it has bid for the 700MHz band.

According to Nomura, this will help Jio in offering better quality services, especially indoor network coverage.

This could go against its rivals Airtel and Vodafone Idea, who have instead opted for the less expensive 900MHz, 1800MHz and 2100MHz bands.

Earlier, a report by IIFL Securities had estimated the total spectrum bids to amount to ₹71,000 crore, but with ₹1,45,000 crore already in its bag and the Day 2 of auctions underway, the government’s 5G spectrum bounty will only get bigger.

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