10 things you need to know about the 5G spectrum auctions


5G spectrum auctions: 5G services likely to start from October

Today I was in a Zoom meeting when my boss asked me, “Are you done with your presentation? Share your screen so we can see your progress so far.”

I wiped the beads of sweat from my forehead, smiled and said, ‘Yes, it’s done! I’ll share in a minute,” and then my screen froze. All they could see was a static me, no audio, no video, and of course no presentation.

The meeting was soon over. Within minutes my boss texted me: “The connection is broken. Your screen was stuck again.” I breathed a sigh of relief and answered him:Sorry must be the network issues. Hopefully I can present tomorrow.”

In response, my boss sent me a snapshot of a headline that read: “5G services are likely to start in October.”

Underneath he wrote:I think you should come up with new excuses after October.”

With the end of India’s largest 5G spectrum auction, it seems that we Indians are almost saying goodbye to no network and apologies for poor connections.

However, besides the likely fate of the 5G launch, many other things happened in the 7-day 5G spectrum auction as well. All the best 5G stocks are in focus after the auction.

We’ve put all the important things that happened in 10 quick points. Here’s a quick summary of the 5G spectrum auction.

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10 things to know about the 5G spectrum auctions:

  • The auction started on July 26 and lasted seven days. Telecoms Minister Ashwini Vaishnaw addressed the media as the auction ended on August 1, 2022. He said: “The purchased spectrum is good enough to cover all circles in the country. In the next 2-3 years we will have good 5G coverage.
  • The auction registered a huge bid of Rs 1.5 tn. The government receives the fees for the spectrums in installments. In the first year, the government will receive Rs 133.7 billion.
  • Of the 72,098 MHz offered at the auction, 51,236 MHz (71%). The airwaves will be assigned on August 10 and the services are expected to roll out in October 2022.
  • The bids received from the 5G spectrum auction are almost double the bids received for the 4G spectrum last year. The total bids for the 4G spectrum amounted to Rs 778.2 billion. The bids on the 5G spectrum are almost triple the 3G spectrum auction held in 2010.
  • Reliance Jio of Mukesh Ambani was the largest bidder. It acquired nearly half of the ether sold. Jio made a total offer of Rs 880.8 billion. It acquired 24,740 Megahertz (MHz) of ether in five bands. It acquired spectrum in 700 MHz, 800 MHz, 1,800 MHz, 3,300 Hz, and 26 GHz.
  • Jio’s closest competitor, Airtel, came in second in the race. Bharti Airtel made a total bid of Rs 430.8 billion for 19,867.8 MHz of ether. It acquired a spectrum of 900 MHz, 1,800 MHz, 2,100 MHz, 3,300 MHz, and 26 GHz.
  • Debt-laden Vodafone Idea made a total bid of Rs 188 billion for 6,228 MHz of ether. It got a spectrum of 3,300 MHz and 26 GHz.
  • Adani’s bid in the spectrum was quite low. Adani made a total bid of Rs 2.1 billion, which is less than 1 percent of the total spectrum bids. Adani acquired spectrum in 26 MHz airwaves. This spectrum is not usable for telephone services; it can be used to set up a private network for end-to-end communication.
  • All bands were sold at base price, except the 1,800 MHz band. Jio and Airtel were in fierce competition to take over the band, driving prices higher.
  • The government had put a supply spectrum in 10 bands. For the first time, 600 MHz ether spectrum was purchased, but no bids were received.
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Takeaway investments…

All the top stocks riding the 5G wave in India have jumped into the 5G spectrum auction.

It looks like Reliance Jio will dominate the Indian telecom sector for years to come due to its sheer size.

Adani has not made an offer for the telephone spectrum. This puts an end to all rumors that Adani is coming with its own telecom services.

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Airtel has managed to capture quite a bit of the ether. It looks like Airtel will dive headfirst into the 5G spectrum.

Vodafone Idea was able to keep its head above water. It got a low share in the airwaves, but hey, something is better than nothing.

Shares of the telecom sector are under the roof of major changes.

Starting with the 5G spectrum to the hidden trend that could boost the telecom sectors in the coming years, the telecom sector is on a rollercoaster ride.

The 5G spectrum auction has delivered promising news for all players in the telecom sector. But remember, it’s not about the opportunity, it’s about how well the company uses the opportunity.

Therefore, before making an investment, an investor should carefully analyze whether all these companies can actually deliver what they promise.

Have fun investing!

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.

This article is from Equitymaster.com

(This story was not edited by UK Time News staff and was generated automatically Platforms.)



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