Here Are the Seven Companies That Qualified For the Upcoming Spectrum Auction

BENGALURU: A list of the seven telecoms, who all have qualified to bid for the upcoming biggest-ever airwaves auction is out. Bidding will start from 1 October 2016, according to the official data released by DoTs (Department of Telecommunications). The seven companies qualifying for the bid goes like - 1) Bharti Airtel, 2) Vodafone India, 3) Reliance Jio Infocomm, 4) Reliance Communications, 5) Idea Cellular, 6) Aircel , and 7) Tata Teleservices.

So far, Mukesh Ambani-led  Reliance Jio has deposited the highest earnest money of 6,500 crore and is authorized to bid in any licensed service area across India, according to the ministry. However, Reliance Communication is barred from bidding for the northeast region and Assam.

The total - 2,354.55 MHz of the spectrum will be put for bid cum sale, in seven bands: 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz and 2,500 MHz. Following the rule, the companies who will win the spectrum in 700MHz, 800MHz, and 900 MHz band category, those telcos will need to pay at 25 percent of the total amount in 10 days and the rest to be paid in 10 consecutive annual installments, after a two-year abeyance. The winner for other bands has to pay at least 50 percent of the sum they bid at the last.

Based on the reserve price, the government is aiming to garner whopping 5.66 lakh crore, all in all. However, Indian telecom companies may dole out Rs 1 lakh crore (approx.) on buying spectrum during the bid, according to Crisil.

This year, the government has adopted one new bidding-friendly measure in which the spectrum won for the particular spectrum, is to be assigned within a month from the date of upfront payment. Unlike last year, the interest on deferred payment will be 9.3 percent. It was 10 percent in 2015.

A crisil report said that the top three telecom companies—Bharti Airtel, Vodafone India, and Idea Cellular—are anticipated as to share about 55-60 percent of the total auction spending.

The lock-in period of equity for a successful bidder has been reduced to one year against a minimum period of three years or completion of rollout obligation, previously.

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