India Has Set a Record by Raising a Huge Amount in the Auction of Telecom Airwaves
Published By : 26 Mar 2015 | Published By : QYRESEARCH
On Wednesday, The Telecom Minister Ravi Shankar Prasad informed that India has set a record by raising US$17.6 billion by making sales of mobile phone airwaves in the recent telecom spectrum auction after a fierce bidding for almost nineteen days.
He further said that the government has received bids which were worth of almost US$16 billion, which are 1.10 trillion Indian rupees. This record has topped the1.10 trillion Indian rupees which were raised in the year 2010. This amount is in the third higher position which the government had expected.
All the winning bidders should pay about a quarter to a third of the winning price in the initial stage, and then the rest by the end of 2027. The spectrum revenue is the key for the government which will plug the entire fiscal deficit.
Nevertheless, the government's payday can be further delayed as a reason that the final allocations to all the operators will happen only after Thursday. Till that time the Supreme Court will already issue its ruling on numerous cases and will question the auction guidelines and its criteria.
The government has not yet disclosed all the winning bidders and not even the regions in which they had won the spectrum. However, India’s top network operators which are Vodafone Group Plc's India unit, Bharti Airtel Ltd, and Idea Cellular Ltd are anticipated to have bought a huge chunk of the 20-year licenses on the offer.
The bidding has underscored the strong competition among all the major companies in India's mobile phone market and the operators' big bet on the capacity for mobile data in the world's speedily growing smart-phone market.