What is Spectrum Auction, Main Highlights of Auction Held in 2021

Why Spectrum auction  in news?

 

The department of telecommunications recently held the spectrum auctions from 1st March in 700, 800, 900, 1800, 2100, 2300 and 2500 MHz.

What are spectrum auction?

Devices such as cellphones and wireless telephones require signal to connect from one point to another point.

These signals are carried on airwaves, which must be sent at certain frequencies to avoid any kind of interference.

Who are responsible for these public assets?

The union Government owns all the publically available assets which also includes airwaves.

With the increment in the phone and internet users in recent years,the need to provide space to these emerged from time to time.

To sell these assets to the companies which are willing to business in India, government held auctions for these time to time.

When was the last time auction held?

The last spectrum auction was held in year 2016 ,where government sell 965MHz receiving an earning of 65,789 crores.

Why did the new auction held?

The need for a new auction spectrum has arisen because of the validity of the airwaves bought by companies will expire in 2021.

What are the main highlights of the 2021 Spectrum auction?

This auction held in 6 rounds.
Reliance Jio emerged as the highest bidder with 57,122.65 crores for 488.35 MHz spectrum.

Bharati airtel stands at second place with 355.45 MHz worth rs 18,698 crores.

Reliance Jio,Bharati airtel and vi are the only bidders in the auction.

None of them showed interest in bidding in 700MHz and 2500MHz bands.

The government this time managed to same 60% of spectrum in auction.

Is the latest spectrum for 5G network?

In certain cases, ministry said that it could be used for 5G services.But, specifically it is for 4G bands .

Government may held an another bidding for 5G bands.

Written By – Deepak Kumar (Senior Analyst) 

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