India's three biggest mobile operators spent heavily to renew licenses and amass 3G spectrum.

Gagandeep Kaur, Contributing Editor

March 27, 2015

22 Min Read
Idea, Airtel, Vodafone Splash Out on Indian Airwaves

Details of license winners in India's $17.5 billion spectrum sale were released yesterday, showing that India's three biggest mobile operators had managed to cling on to their 900MHz holdings and pick up new airwaves for the rollout of 3G services. (See India's Mega Spectrum Sale Garners $17.5B and India's Spectrum Sale Shatters Records .)

Bharti Airtel Ltd. (Mumbai: BHARTIARTL), Vodafone India and Idea Cellular Ltd. -- which had all been fighting to defend existing 2G operations -- stumped up as much as 78% of the total auction proceeds, while Reliance Communications Ltd. (the country's number-four player) appeared to lose some of its 900MHz concessions and Uninor walked away from process empty-handed.

Although India's Department of Telecom (DoT) has released provisional results, they remain subject to government approval as well as a Supreme Court ruling on complaints about the auction procedures. In the meantime, Light Reading has prepared a breakdown of how each player performed on this provisional basis.

Idea Cellular
At risk of losing mobile licenses covering nine circles (or service areas), Idea Cellular was an especially aggressive bidder in the 900MHz band. In total, it procured 54MHz in this frequency range at a cost of INR276.4 billion ($4.4 billion). But it secured just 20.4MHz in the 1800MHz band and only 5MHz in the 2.1GHz band and did not even bid for spectrum on offer in the 800MHz band. Evidently, Idea's idea was to focus its energies on 900MHz spectrum and look to 1800MHz and 2.1GHz only in circles where it could not procure the former.

Circle

900MHz

1800MHz

2.1GHz

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Andhra Pradesh

5MHz

544.33

Assam

Bihar

Chattisgarh

Gujarat

5MHz

538.14

Himachal Pradesh

4.8MHz

12.21

Haryana

6MHz

145.05

Karnataka

5MHz

445.78

1MHz

29.59

Kolkata

5MHz

92.42

Kerala

6MHz

354.45

Madhya Pradesh

7.4MHz

366.27

Maharashtra

9MHz

1,112.58

North East

1MHz

1.76

Orissa

5MHz

26.47

Punjab

5.6MHz

323.07

Tamil Nadu

6.4MHz

230.29

Rajasthan

UP (W)

5MHz

590.54

2.2MHz

33.74

UP (E)

West Bengal

Total

54MHz

4,420.21

20.4MHz

334.05

5MHz

92.42

Source: DoT

For all the latest news from the wireless networking and services sector, check out our dedicated Mobile content channel here on Light Reading.

Bharti Airtel
Like Idea, Bharti Airtel decided to give 800MHz a miss. It bought 61.2MHz in the 900MHz band and bid fairly aggressively for 2.1GHz, securing 35MHz in this frequency range. That suggests the operator is eager to extend its 3G services into previously underserved areas.

The operator, India's largest, spent INR222.54 billion ($3.56 billion) on securing 900MHz spectrum in 10 circles and another INR10.42 billion ($167 million) on 1800MHz licenses covering six circles. Its 35MHz of 2.1GHz spectrum, which covers a total of seven circles, came at a cost of INR58 billion ($933 million).

"The company's spectrum acquisition strategy is aimed at enhancing its leadership position in the fast-growing data segment in the country," said Bharti Airtel in a statement.

Circle

900MHz

1800MHz

2.1GHz

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Andhra Pradesh

9MHz

979.79

1.2MHz

46.59

Assam

6.2MHz

183.37

Bihar

1.6MHz

113.67

Chattisgarh

Gujarat

5MHz

206.30

Himachal Pradesh

7.4MHz

67.98

Haryana

3.4MHz

25.33

5MHz

36.78

Karnataka

8.8MHz

784.58

Kolkata

2MHz

47.69

Kerala

Madhya Pradesh

5MHz

73.04

Maharashtra

5MHz

240.68

North East

8.8MHz

73.04

1.6MHz

2.81

Orissa

1.2MHz

26.68

6.2MHz

32.82

5MHz

28.82

Punjab

10MHz

576.92

1MHz

11.35

Tamil Nadu

5MHz

275.07

Rajasthan

6MHz

679.97

UP (W)

UP (E)

5MHz

72.20

West Bengal

2.2MHz

73.00

Total

61.2MHz

3,559.03

15.4MHz

166.61

35MHz

932.91

Source: DoT

Next page: Vodafone, RJio and RCom

Vodafone India
Vodafone India bought spectrum in 12 circles at an overall cost of INR258.1 billion ($4.1 billion), managing to renew 900MHz rights in all the six circles where licenses were due to expire later this year. Vodafone also gained 30MHz in the 2.1GHz band and another 5.6GHz in the 1800MHz range.

“With the spectrum acquired in this auction, we have ensured the continuity of our business and increased our capability to provide high speed 3G coverage to more areas," said Marten Pieters, Vodafone India's CEO, in a statement. (See Vodafone India Spends $4.1B on Spectrum .)

"Vodafone has committed a total of approximately INR258 billion [$4.1 billion] in this auction," he added. "This is on top of INR750 billion [$12 billion] we have already invested in the last five years. We will continue to invest in building our network in the coming years to harness the potential of the spectrum won."

Circle

900MHz

1800MHz

2.1GHz

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Andhra Pradesh

Assam

5MHz

30.89

Bihar

Chattisgarh

Gujarat

6MHz

645.77

3.4MHz

129.41

Himachal Pradesh

Haryana

6.2MHz

149.91

Karnataka

5MHz

262.65

Kolkata

5MHz

94.13

Kerala

6.4MHz

378.07

1MHz

13.35

Madhya Pradesh

Maharashtra

5MHz

618.10

North East

5MHz

8.85

Orissa

5MHz

111.15

Punjab

Tamil Nadu

Rajasthan

6.4MHz

725.29

5MHz

111.80

UP (W)

5MHz

8.40

UP (E)

5.6MHz

694.59

1.2MHz

20.52

West Bengal

2.2MHz

73.00

Total

42.8MHz

3,395.91

5.6MHz

163.26

5MHz

592.34

Source: DoT

Reliance Jio
In the run-up to the auction, Reliance Jio had made a bigger initial deposit than any other player, indicating that it wanted to capture a substantial amount of spectrum during the auction. Focusing on the 800MHz and 1800MHz bands, and totally ignoring the 900MHz and 2100MHz bands, RJio procured 800MHz spectrum in nine circles, at a cost of INR77.3 billion ($1.24 billion), and 1800MHz in six, for a fee of INR22 billion ($352 million), spending INR99.36 billion ($1.58 billion) in total.

Circle

800MHz

1800MHz

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Andhra Pradesh

4.92MHz

65.74

Assam

4.92MHz

68.64

Bihar

Chattisgarh

Gujarat

4.92MHz

15.65

Himachal Pradesh

4.92MHz

45.23

5.4MHz

13.73

Haryana

4MHz

29.81

Karnataka

Kolkata

5MHz

119.22

Kerala

4.92MHz

581.71

Madhya Pradesh

4.92MHz

326.55

Maharashtra

North East

4.92MHz

20.29

Orissa

4.92MHz

32.82

Punjab

Tamil Nadu

6MHz

21.59

Rajasthan

10MHz

116.34

UP (W)

UP (E)

3.69MHz

80.36

3MHz

51.30

West Bengal

Total

43.05MHz

1,237.00

28MHz

352.00

Source: DoT

Reliance Communications
Like RJio, Reliance Communications also focused its attention on 800MHz spectrum, acquiring airwaves in this range covering 11 circles. But it failed to renew 900MHz licenses in the circles of Assam, Bihar and West Bengal, hanging on to these frequencies only in Himachal Pradesh and Madhya Pradesh. Surprisingly, the operator also picked up 1800MHz airwaves in many of the same circles where it became an 800MHz licensee, ignoring the 2.1GHz band altogether. The fact that RCom operates a CDMA network could explain its focus on the 800MHz band. Overall, the operator spent INR42.28 billion ($676 million) on spectrum.

Circle

800MHz

900MHz

1800MHz

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Spectrum

Cost ($M)

Andhra Pradesh

Assam

4.92MHz

65.73

Bihar

Chattisgarh

Gujarat

2.46MHz

110.99

Himachal Pradesh

2.46MHz

7.82

5MHz

45.94

Haryana

1.23MHz

11.31

0.6MHz

4.47

Karnataka

0.6MHz

17.75

Kolkata

1MHz

29.43

Kerala

Madhya Pradesh

5MHz

247.48

Maharashtra

North East

5MHz

20.31

5MHz

8.80

Orissa

1MHz

8.16

5MHz

26.47

Punjab

2MHz

34.38

0.6MHz

6.81

Tamil Nadu

Rajasthan

UP (W)

1MHz

19.03

UP (E)

West Bengal

1MHz

11.35

Total

23.37MHz

318.50

10MHz

293.42

11.8MHz

64.30

Source: DoT

Besides these players, Tata Teleservices Ltd. acquired 800MHz spectrum in five circles and 1800MHz in two, while Aircel Ltd. bought 1800MHz in Tamil Nadu. Uninor , a subsidiary of Norway's Telenor Group (Nasdaq: TELN), emerged from the auction as the only operator that failed to pick up any airwaves whatsoever.

– Gagandeep Kaur, contributing editor, special to Light Reading

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About the Author(s)

Gagandeep Kaur

Contributing Editor

With more than a decade of experience, Gagandeep Kaur Sodhi has worked for the most prominent Indian communications industry publications including Dataquest, Business Standard, The Times of India, and Voice&Data, as well as for Light Reading. Delhi-based Kaur, who has knowledge of and covers a broad range of telecom industry developments, regularly interacts with the senior management of companies in India's telecom sector and has been directly responsible for delegate and speaker acquisition for prominent events such as Mobile Broadband Summit, 4G World India, and Next Generation Packet Transport Network.

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