5G spectrum auction for bands worth ₹96,000 crore begins; key details here

The government has started auction for 5G spectrum and has received bids from major telecom operators like Bharti Airtel, Reliance Jio and Vodafone India (VI). The total quantum of spectrum being auctioned is 10,522.35 megahertz (MHz) worth ₹96,238.45 crore.

"To augment existing telecom services and maintain continuity of services, the government will hold the spectrum auction on Tuesday, 25 June 2024. This is in line with the government's commitment to facilitate affordable, state-of-art high-quality telecom services to all the citizens," the Ministry of Communications said in a statement.

What is spectrum?

Spectrum refers to radio frequencies allowing wireless communication for mobile devices, including calls, social media, ride-hailing, and directions.

The spectrum bands that will go for bidding include 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 gigahertz (GHz).

The 1800 MHz spectrum has been allocated ₹21,752.4 crore at reserve price. It is followed by 800 MHz band at ₹21,341.25 crore.

According to the government, the spectrum will be assigned for 20 years. The successful bidders can make the payment in 20 equal yearly installments.

"Spectrum acquired through this auction can be surrendered after a minimum period of ten years," it added. No spectrum usage charges (SUC) will be applied for the spectrum acquired in this auction, the government said.