Reliance Jio pays EMD of Rs 3K cr for Spectrum bid

In contrast, competitors Bharti Airtel and Vodafone Idea (Vi) require spectrum renewals in some circles during the auction.
Reliance Jio
Reliance Jio (File Photo)

NEW DELHI: Reliance Jio, India’s largest telecom service provider submitted the maximum earnest money deposit (EMD) of Rs 3,000 crore for the upcoming spectrum auction on June 6. This is despite none of Jio’s licences need renewal.

In contrast, competitors Bharti Airtel and Vodafone Idea (Vi) require spectrum renewals in some circles during the auction. Bharti Airtel deposited Rs 1,050 crore, while Vi deposited Rs 300 crore. All three private companies will compete for Rs 96,317.65 crore worth of 5G airwaves across various bands, including 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz.

Bharti Airtel, India’s second-largest telecom service provider, needs to renew spectrum in Jammu & Kashmir, Odisha, Bihar, UP (East), West Bengal, and Assam. Vodafone Idea requires renewals in West Bengal and UP West circles.

Based on the Department of Telecommunications (DoT) details, Jio has been allocated 21,363 eligibility points, followed by Airtel with 7,613 and Vi with 2,200. All service providers can bid in any band or service area depending on their eligibility points and spectrum caps. In terms of net worth (as per DoT details), Jio leads with Rs 2,31,121 crore (as of December 31, 2023). Bharti Airtel follows with Rs 86,260 crore (as of May 6, 2024), while Vi has a negative net worth of Rs 1,16,886 crore (as of May 3, 2024).

Analysts expect the government to raise a maximum of `18,000 crore, roughly 19% of the total spectrum value.

In the last spectrum auction held in July 2022, the government mopped up over Rs 1.5 lakh crore. The auction offered over 72 GHz of airwaves across 10 different 5G bands, with a reserve price of Rs 4.3 lakh crore.

Jio licences don’t need renewal yet will bid

Bharti Airtel and Vodafone Idea (Vi) require spectrum renewals in some circles during the auction. Bharti Airtel deposited Rs 1,050 crore, while Vi deposited Rs 300 crore. All three private companies will compete for Rs 96,317.65 crore worth of 5G airwaves across various bands. Jio is bidding despite it doesn’t require licence renewal

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