Reliance Jio has moved ahead as Adanis ends its big 5G spectrum play | Techno Glob

Ambitions to become an all-India mobile player were at least dampened by a group of rivals as Adanis on Monday submitted a substantial cash deposit (EMD) of Rs 100 crore for the 5G spectrum auction. rigth now.

Based on its EMD, analysts say it can buy only Rs 900 crore worth of spectrum, the use of which will be limited to enterprises and captive networks – which can only be in a few areas with infrastructure like ports, airports and power. stations.

While getting the 400 MHz (costs Rs 2,800) all-India millimeter band spectrum has been ruled out, it may pick up circles like Gujarat and Mumbai.


The Department of Telecom on Monday announced the four pre-bidders, which together shared Rs 21,800 crore as EMD with Reliance Jio sharing Rs 14,000 crore, Bharti Rs 5,500 crore and Vodafone Rs 2,200 crore from Adanis.

As part of the auction, the DoT sets an EMD for each block of spectrum, which differs from environment to environment and spectrum band. Telcos, based on their segment-wise spectrum acquisition plan, have to submit an EMD indicating how much the operators are willing to spend during the auction.

ALSO READ: 5G auction: Jio deposits Rs 14k cr, Adani deposits Rs 100 cr

According to analysts’ formula, what the telcos are willing to spend on the auction is eight to 10 times the EMD. As part of the rule, broadcasters cannot bid more than this war chest and it is wise to maintain a cushion during competition.

But there are telcos who go for high EMD to confuse their competitors because as per the rules they don’t spend the money completely.


For example, analysts say Reliance Jio’s EMD is primarily meant to mask its real strategy. According to experts, in the previous auction too, Bharti and Reliance Jio had bid high EMD.

However, Jio is clearly taking an aggressive stance: it can either buy 100 MHz in the 3.5 GHz band or go for 130 MHz (40 percent of the spectrum on offer) for Rs 49,000. at the base price and choose anything between 800 and 1000 MHz in the millimeter band (which costs Rs 5,600-7,000). In the millimeter band, it may reserve one band (400 MHz) for B2C services and another band for B2B services.

With its war chest of Rs 1.12-1.40 trillion based on EMD, Reliance UP West, Assam, North East, J&K etc., analysts said.

And Airtel was an average player. With an EMD of Rs 5,500 crore, it will be able to buy 100 MHz of all India in the 3.5 GHz band, more or less the same as Reliance’s. But in the millimeter band, it can go much lower, looking at something like 400-800 MHz.

Vodafone Idea, with a war chest of Rs 17,700-20,000 based on its EMD, is focusing on the 16-17 circle, which is focusing on buying in the 3.5GHz and millimeter bands rather than going all-India.

The strategy is to provide 5G services to customers in these key markets rather than going all-India. According to analysts, they have enough money to support 50-60 MHz of 5G spectrum in the 3.5 GHz band and 400-500 MHz in the millimeter band. Such a move will also enable them to save significantly on spectrum user charges (SUC) as the output is zero in these bands.

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