5G Auctions Begin Today: Your 5-Point Guide

The central government will, on Tuesday, start the biggest spectrum auction of airwaves capable of offering fifth-generation or 5G telecom for ultra-high-speed internet, which will pave the way for 10 times faster services.

Four applicants will participate in the bidding race.

Here are 5 points on the auction process:

The government will put on the block as much as 72 GHz of the spectrum during the auction. India’s largest telecom operator, Reliance-owned Jio, Sunil Bharti Mittal’s Airtel, Vodafone-Idea and Adani Data will participate in the auction race.

The four behemoth firms have submitted a combined ₹ 21,400 core in earnest money deposit (EMD). Jio has submitted ₹ 14,000 crore, Bharti Airtel has put in ₹ 5,500 crore and Adani Data Networks ₹ 100 crore. Vodafone Idea has submitted an EMD of ₹ 2,200 crore.

The EMD amounts give a broad indication of players’ appetite, strategy and plan for picking up spectrum in an auction. It also determines the eligibility points through which telcos target a specific amount of spectrum in a given circle.

The auction will be held for radiowaves in various low-frequency bands (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 megahertz) and high-frequency bands (26GHz).

Adani Data’s entry earlier this month had surprised market watchers, but the company refuted the reports of a foray into the consumer space and any clash with Jio. The company said the airwaves it is seeking are meant to set up a private network to help digitise its businesses from airports to energy to data centres.