RCom, Aircel to Bid Separately in Spectrum

Auction
Telecom operators Reliance Communications (RCom) and
Aircel, which had announced their merger on the last date of
submission of the spectrum auction application, plan to bid
separately in the upcoming spectrum auction where all the 7
applicants - Reliance Jio, Bharti Airtel, Idea Cellular,
Vodafone, Tata Teleservices,RCom and Aircel, have made it
to the final list of bidders. According to the information
released by the DoT - Department of Telecom, none of the
applicants withdrew their application. The last date for
application withdrawal was 22nd September.

Bidding eligibility points of different telecom operators:

RCom is eligible to bid for spectrum across the country apart from North East and
Assam. RCom has been allocated 2,158 eligibility points. The company has
submitted an EMD of Rs.313 cr.
There are is list of restrictions on bidding eligibility of Aircel. The company isnt
allowed to bid for spectrum in premium 700 Mhz, 800 Mhz and 2500 Mhz in any of
the circle. It is eligible for bidding in 13 out of the 22 circles for 3G spectrum (2100
Mhz) which include Uttar Pradesh (East), Tamil Nadu, Bihar, Andhra Pradesh,
Karnataka etc. Aircel can only bid for spectrum in 900 Mhz and 1800 Mhz band
across all the circles. Aircel has been allocated 792 eligibility points. The company
has submitted an EMD of Rs.120 cr.
The novel entrant Reliance Jio - telecom venture of nation's richest man for ninth
year in a row with a sharp rise in net worth to 22.7 billion dollars, Mukesh Ambani
has been allocated the highest eligibility point of 44,506, and is allowed to bid in
any band in any service area. Reliance Jio is the only applicant which has the
potential to bid for pan-India airwaves in premium 700 Mhz band for mobile
services. The company which has unshackled a price war in the Indian subcontinent

with its disruptive offerings, last week submitted the highest EMD - earnest money
deposit for the auction at Rs.6,500 cr.
Vodafone, which has accumulated Rs.47,700-cr war chest with fresh equity flowing
in from the parent ahead of the auctions, has been allocated 18,821 eligibility points,
and can bid in any band in any part of the country for airwaves.
Tata Teleservices (TTSL) - 6,919 (eligibility points) ; submitted an EMD of Rs.1000
cr.

Eligibility points
45000
40000
35000
30000
25000

Eligibility points

20000
15000
10000
5000
0
Reliance Jio Vodafone

TSSL

RCOM

Aircel

The Dream Band of 700 Mhz:

This is the very first time that the government will auction the 700 Mhz band, which is
considered to be the most premium as the cost estimation of providing service through it is
close to one-third of 3G under the 2,100 Mhz band. A company planning to buy spectrum
in 700 Mhz band will have to shell out a minimum of Rs.57,425 cr. Total spectrum worth
Rs.4,01,975 cr in 700 Mhz band is being put up for auction by the government.

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Article Written by
Salman Hashmi