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The spectrum auctions got off to a flying start on Wednesday with the government mopping up Rs 60,000 crore on day one at the end of six rounds of bidding.
Telecom minister Ravi Shankar Prasad had earlier said he’s looking at mopping up around Rs 1 lakh crore from the auctions.
The auction this time — it is the fourth since 2010 — is the biggest since four bands of spectrum in 800, 900, 1800 and 2100 MHz are on offer, but the most crucial is 900 MHz. Not only is the 900 MHz band most efficient, it is held by four operators — Bharti Airtel, Vodafone, Idea and Reliance Communications — in several circles and since their licences are expiring in 2015-16 they need to win the airwaves back.
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Not being able to win back would require to buy spectrum in another band, which is not in adequate supply so the entire business operations of the concerned operator is at stake.
It is precisely for this reason that the auction has been termed as a make or break one for the operators. On Wednesday, officials said that most aggressive bidding was seen in the 900 MHz band.
While 900 MHz and 2,100 MHz bands witnessed good bidding, 800 MHz was the surprise band generating a lot of interest. However, there was not much bidding in Mumbai, Delhi and Karnataka circles in the 2,100 MHz band, sources said. FE