Spectrum Auction - Telecom Firms On A Shopping Spree: Motilal Oswal

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Motilal Oswal Report

The telecom spectrum auction ended after six rounds on Day 2. The key highlights are-

The government raked in Rs 778 billion versus its expectation of Rs 450 billion from the sale of 855.6 megahertz of spectrum, ~37% of the total 2,308.8MHz put up for auction.

This is ~60% higher than the renewal spectrum requirement across telcos.

This was led by Reliance Jio/Bharti Airtel Ltd., which bought bulk of the spectrum - 488.35/355.45MHz – for Rs 571 billion/Rs 187 billion, i.e. 44%/104% higher than that required for renewal.

Vodafone Idea Ltd. response was muted. It bought spectrum worth Rs 20 billion in just five circles (76% lower than that required for renewal).

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