Distribution
Govt. to earn over Rs 61,600 crore from 2G Spectrum Auction
NEW DELHI: The government is expected to earn about Rs 61,162 crore from the 2G spectrum auction that ended after 68 rounds of bidding over 10 days.
Major telecom companies Airtel and Vodafone have bagged spectrum in the crucial 900 MHz band in important markets like Delhi, Mumbai and Kolkata.
The government’s total revenue from the auction (which is provisional) is much higher than its initial estimate of about Rs 41,000 crore. The licences will be valid for a period of 20 years. The companies need to pay only a quarter to a third of the winning auction price upfront and the remainder by 2026.
Telecom Secretary M F Farooqui said the government will get at least an estimated Rs 18,200 crore this fiscal, much higher than budget estimate of Rs 11,300 crore.
With the government facing a huge budget deficit target for the current fiscal year ending in March amid a shortfall in tax collections and revenue receipts from divestment of stake in state companies, Finance Minister P Chidambaram will welcome the higher-than-expected revenues from the spectrum auction.
Eight companies, including Bharti Airtel, Vodafone, and Reliance Industries, had applied to bid in the auction of 900 megahertz and 1800 megahertz band airwaves. The 900 megahertz band was auctioned only in three cities – Delhi, Mumbai and Kolkata.
The stakes were especially high for Vodafone and Bharti which use 900 Mhz. They had to join the auction after the Supreme Court refused to extend their licences, which expire in November 2014. Idea too won spectrum in the 900 MHz band in Delhi.
The Mukesh Ambani-backed Reliance Jio bagged 1800 MHz band in 14 circles out of the 22 on offer. This will help the company to not only offer data but also voice services in these regions. Reliance Jio had earlier won the rights to offer 4G broadband services across the country.
In the 1800 MHz band, Airtel won in 15 circles, Vodafone in 10 and Idea in 11.
Bidding for the 900 MHz band in Delhi, Mumbai and Kolkata was very aggressive, with Vodafone and Bharti Airtel forced to protect their turf. In Delhi, the winning bid was Rs 741 crore as against the reserve price of Rs 360 crore; in Mumbai, the winning bid was Rs 563 crore, while the reserve price was Rs 328 crore, and in Kolkata, the winning bid was Rs 195 crore vs a reserve price of Rs 125 crore.
Bids for the 900 Mhz band run into higher sums as it is considered better quality spectrum which requires lower investment for telecom companies to set up infrastructure. In comparison, the 1800 Mhz band requires higher capital expenditure.
The 2G spectrum had to be auctioned afresh after the Supreme Court ordered in 2012 the cancellation of 122 licences issued in 2008 by then Telecom Minister A Raja. The Supreme Court held that the process used by him to allot licences was “illegal” and ordered a new auction. Auctions in November 2012 and March 2013 flopped as most bidders stayed away from the sales, complaining that the floor bid prices were too high.
The eight bidders applied to participate in the current auction after the government sharply cut auction reserve prices.
New Delhi: Prasar Bharati has thrown open applications for fresh capacity on DD Free Dish, signalling a timely opportunity for broadcasters looking to expand reach without long-term lock-ins. The public service broadcaster has issued a dual notice for its 95th and 96th online e-auctions, aimed at filling vacant MPEG-2 and MPEG-4 slots on a pro-rata basis for February and March 2026.
The two auctions are tentatively scheduled to begin on January 27, with allotments valid from February 1, 2026. Applications for both auctions close on January 21 at 3 pm, giving channels a narrow window to get their bids in.
The 95th e-auction will cover vacant MPEG-2 slots, while the 96th will focus on MPEG-4 capacity. Participation is limited to satellite television channels holding valid downlinking and uplinking permissions from the ministry of information and broadcasting. International public broadcasters cleared by the ministry are also eligible.
As with previous rounds, channels have been grouped into buckets based on genre and language, with sharply differentiated reserve prices reflecting reach and demand.
For the MPEG-2 auction, Hindi and Urdu general entertainment channels sit at the top of the pile. The starting reserve price for bucket A+ in the first round is Rs 2,63,48,000. Movie, music and sports channels in Hindi and Urdu follow in bucket A at Rs 2,10,14,000. Bhojpuri channels and other Hindi and Urdu genres, excluding devotional content, fall under bucket B with a reserve of Rs 1,78,62,000. Hindi and Urdu news channels in bucket C start at Rs 1,33,27,000, while bucket D, which includes regional language channels, English news and devotional or spiritual channels, begins at Rs 1,13,96,000.
The MPEG-4 auction comes in at a far leaner price point. News and current affairs channels in Hindi, English or pan-India languages, grouped under bucket G1, start at Rs 13,41,000. Non-news genres under bucket G2 have a reserve of Rs 8,80,000. Regional languages such as Marathi, Punjabi and Gujarati in bucket R2 begin at Rs 4,84,000. Southern language channels in Tamil, Telugu, Kannada and Malayalam, grouped under bucket R1, start at Rs 81,000, the same reserve price set for other scheduled 8 regional languages in bucket R3.
Prasar Bharati has underlined that compliance will be closely watched. Broadcasters must ensure that at least 75 per cent of their monthly programming, excluding advertisements, aligns with the declared genre and language. Any deviation could trigger show-cause notices or even removal from the DD Free Dish platform.
For channels chasing reach in a crowded market, the message is clear. The window is brief, the prices are set and the audience is waiting. On DD Free Dish, visibility still comes cheap, but only for those ready to move fast.
