5G spectrum bidding may not be aggressive: Research Reports

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“The highest number of spectrums available per player for 5G bands based on Pan-India will be worth 489 billion ($ 6.1 billion). Assuming Rjio (Reliance Jio Infocomm) and Bharti Airtel bargain as far as permitted, there will still be still there , there will still be, there will still be, there will still be, there will still be, there will still be, there will still be, so there will be enough spectrum remaining to meet the maximum number that can be offered by two other players (based on the number of EMD their EMD ), “said Morgan Stanley.

“Considering the availability of adequate spectrum, and based on our assumptions, we estimate all offers that win with reserve prices with overall spectrum expenditure have the potential for around 1 trillion hospital,” Nomura said in his report.The four bidders for the 5G spectrum auction have paid their truly money deposits (EMD) with Reliance Jio Infocomm Ltd paying the highest at 14,000 Crore Hospital.

The bidder for the spectrum is Reliance Jio Infocomm, Adani Data Networks Ltd, Vodafone Idea Ltd, and Bharti Airtel Ltd.According to the EMD Telecommunications Department (DOT) paid by Othersarrera Adani Data Networks RS 100 Crore, Vodafone Idea RS 2,200 Crore, and Bharti Airtel RS 5,500 Crore.

In terms of the bidders’ net worth, Reliance Jio led the package with RS 1,97,790 Crore and followed by Bharti Airtel RS 75,886.8 Crore, Adani Data Networks RS 4,979.1 Crore and Vodafone Idea RS (-) 80,918Crore.The feasibility points allocated for the bidder are: Reliance Jio -159.380, Bharti Airtel – 66,330, Vodafone Ideas – 29,370 and Adani Data Network – 1,650.

EMD money and feasibility points allocated for Adani Data Networks positioned it to get a spectrum of RS 7-11.4 billion under different scenarios (the price of the spectrum winner 8 -9.2x from the number of EMD). This is under the assumption that Adani Data Networks offer for the 5G band (3300 MHz or 26GHz) for several local service areas (LSA)/circle, said Morgan Stanley.

“Based on the location of the physical network of the group assets, it might want to bid LSA such as Gujarat, Andhra Pradesh and Maharashtra,” the report added.

The highest EMD payment gives Reliance Jio Infocomm flexibility to exceed 5G bands (3300 MHz/26 GHz) and bargain both for existing ribbons (800MHz, 1800MHz and 2300MHz) and/or new bands (600 MHz, 700 MHz). The number of additional maximum spectrum for other bands that Reliance Jio can do is RS 545-736 billion ($ 6.8-9.2 billion), stating the report.

Morgan Stanley stated that the spectrum responsibility for Bharti Airtel could be higher with the paid EMD.The maximum spectrum that Bharti Airtel could be negotiated was RS 489 billion ($ 6.1 billion) versus an estimated basic case of Morgan Stanley of $ 2.4 billion in F2023.

Morgan Stanley has taken the cumulative spectrum responsibility related to 5G $ 3 billion for 2023-24.According to Nomura, with a 5G spectrum auction at the end of this month, an increase in the 5G -activated telephone share and the Indian government’s goal to start launching 5G on August 15, 2022, the 5G launch will begin this year.

However, considering that the newborn 5G ecosystem (simple about seven percent of the whole smartphone base is activated 5G) and a developing use, the launch will be in metro and big cities, added Nomura.As per the dot notification invites the application, applicants have time to be interesting on July 19, and the final list of the bidder will be announced on July 2022. The auction will begin on July 26, 2022