Jio has submitted earnest money deposit (EMD) of ₹14,000 crore, the highest among all the companies bidding for 5G airwaves, signalling its aggressive intent in the upcoming auction starting July 26. New entrant Adani Data Networks deposited Rs 100 crore, which possibly underlined its game plan of picking up limited airwaves in select areas for captive networks.
put in EMD of ₹5,500 crore, which will possibly ensure it can buy pan-India 5G airwaves comfortably. Cash-strapped (Vi) surprised experts by submitting ₹2,200 crore as earnest money, indicating that it will buy 5G airwaves but in limited quantities and in its priority markets, say analysts.
The EMD data, disclosed by the Department of Telecommunications (DoT) Monday, is indicative of a company's bidding strategy and spectrum buying capacity as it gives the applicant eligibility points, based on which it can target a certain quantum of airwaves in select or all available bands in specific or all circles.
Analysts say that on paper, a bidder can target spectrum worth up to 8-9 times their respective EMDs in the 5G auction. Based on that benchmark, the EMD ticket sizes would allow telecom market leader Jio and to buy 5G airwaves worth around ₹1,30,000 and ₹50,000 crore, respectively.
Analysts Expect Auction to be Over in 2 Days
Vi could buy 5G airwaves worth around Rs 20,000 crore while Adani can buy less than Rs 1,000 crore worth of airwaves.
Given the ample spectrum supplies and limited interest from the Adani group, industry executives and analysts don't expect the auction to last for more than two days with almost all bands going at base price. They expect the government to net around Rs 1-1.2 lakh crore from this year's auction, out of the roughly Rs 4.3 lakh crore worth of 5G airwaves on sale.
"High spectrum base prices, compared to global benchmarks, is one of the reasons why the interest around the 5G auction, reflected in the EMDs, is limited largely to the existing telcos and not from any new entrants," Prashant Singhal, EY Global TMT emerging markets leader, told ET.
Jio, Airtel, Vi and Adani didn't respond to ET's emailed queries around bidding strategies.
A senior executive at a telco said Jio's aggressive EMD indicates that it wants to take the lead in 5G services with more than enough 5G spectrum in its kitty, as it is aware of Airtel's execution strength and mindful of the fact that the Adani Group may look at entering the consumer mobility space at a later stage.
put in EMD of ₹5,500 crore, which will possibly ensure it can buy pan-India 5G airwaves comfortably. Cash-strapped (Vi) surprised experts by submitting ₹2,200 crore as earnest money, indicating that it will buy 5G airwaves but in limited quantities and in its priority markets, say analysts.
The EMD data, disclosed by the Department of Telecommunications (DoT) Monday, is indicative of a company's bidding strategy and spectrum buying capacity as it gives the applicant eligibility points, based on which it can target a certain quantum of airwaves in select or all available bands in specific or all circles.
Analysts say that on paper, a bidder can target spectrum worth up to 8-9 times their respective EMDs in the 5G auction. Based on that benchmark, the EMD ticket sizes would allow telecom market leader Jio and to buy 5G airwaves worth around ₹1,30,000 and ₹50,000 crore, respectively.
Analysts Expect Auction to be Over in 2 Days
Vi could buy 5G airwaves worth around Rs 20,000 crore while Adani can buy less than Rs 1,000 crore worth of airwaves.
Given the ample spectrum supplies and limited interest from the Adani group, industry executives and analysts don't expect the auction to last for more than two days with almost all bands going at base price. They expect the government to net around Rs 1-1.2 lakh crore from this year's auction, out of the roughly Rs 4.3 lakh crore worth of 5G airwaves on sale.
"High spectrum base prices, compared to global benchmarks, is one of the reasons why the interest around the 5G auction, reflected in the EMDs, is limited largely to the existing telcos and not from any new entrants," Prashant Singhal, EY Global TMT emerging markets leader, told ET.
Jio, Airtel, Vi and Adani didn't respond to ET's emailed queries around bidding strategies.
A senior executive at a telco said Jio's aggressive EMD indicates that it wants to take the lead in 5G services with more than enough 5G spectrum in its kitty, as it is aware of Airtel's execution strength and mindful of the fact that the Adani Group may look at entering the consumer mobility space at a later stage.
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