The first spectrum auction under the newly formed Central government saw a modest response of Rs. 11,340.78 crore from its second 5G spectrum sale. A mere 12 percent of the government’s reserve price of more than Rs. 96,238 Crores set for the auction saw bidding and got auctioned.
Bharti Airtel Limited emerged as the top buyer of the auction followed by Vodafone Idea and Reliance Industries.
As per sources Airtel and Vi largely followed an expected strategy of buying spectrum in circles where their permits would be expiring this year and in contrast, Reliance Jio merely boosted its 5G airwave holdings in 1,800 MHz to improve its pan-India 4G and 5G coverage.
Listed below are Telecom players of the country that have revolutionized the Telecom sector in India along with additional details regarding the Spectrum Auction
Bharti Airtel
Bharti Airtel Limited is a global telecommunication company engaged in providing products and services through segments such as mobile services, airtel business, home services, digital TV services, and many more. It has a global presence with operations in 16 countries with 530+ million customers.
With a market capitalization of Rs. 8,43,558 Crores, the shares of Bharti Airtel Limited closed at Rs. 1,482.30 per equity share, up 1.63 percent from its previous day’s close price of Rs. 1,458.55.
In the 5G Spectrum Auctions, Bharti Airtel Limited acquired 97 MHz 5G airwaves worth Rs. 6,856.76 Crores, contributing around 60.5 percent of the sold spectrums in the auction. As per sources Airtel’s purchase included airwaves in the efficient sub-GHz 900 MHz band and in the 1,800 and 2,100 MHz bands.
Bharti Airtel Limited has a market share of 32.74 percent in telecom services with 260.4k towers, 11 data centers, 120 edge DCs, 7 submarine cables, 1.2 lakh crore of spectrum investment, 400k+ RKms of domestic fiber, and 365k+ RKms of global fiber network.
Its Revenue from operations grew by 4.42 percent from Rs. 36,009 Crores in Q4FY23 to Rs. 37,599 Crores in Q4FY24 accompanied by profits of Rs. 4,226 Crores to Rs. 2,068.2 Crores.
Vodafone Idea
Vodafone Idea Limited which is one of the leading telecom services providers in India, is engaged in the business of providing pan-India voice and data services, broadband services, content services, enterprise services, and many more.
With a market capitalization of Rs. 1,25,712 Crores, the shares of Vodafone Idea Limited closed at Rs. 18.52 per equity share, up 2.77 percent from its previous day’s close price of Rs. 18.02.
In the recent 5G Spectrum Auctions Vodafone Idea, bought 30 MHz of 5G airwaves for ~Rs. 3,510.40 crore, accounting for nearly 31 percent of the auction proceeds. It has made a recent equity funding of Rs 23,000 crores which bolstered its position in the auction. As per sources it acquired 900, 1,800, and 2,500 MHz bands.
As per sources, Vodafone Idea, besides renewing 900 MHz spectrum in Uttar Pradesh West and West Bengal, it has enhanced its 900 MHz holdings in seven circles, Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, Uttar Pradesh East, and Kolkata, which will enable it to enhance 4G coverage, especially indoors, in these markets.
The chief executive of Vodafone Idea, Akshaya Moondra said “Vi has strategically acquired spectrum in select markets to enhance and strengthen its overall spectrum portfolio,”.
Vodafone Idea Limited has a spectrum holding of 8,005 MHz over 184,400+ locations, broadband over 4,43,500+ sites, 4G Coverage of 1 billion+, and a subscriber base of ~226 million.
Its Revenue from operations grew by 0.62 percent from Rs. 10,509 Crores in Q4FY23 to Rs. 10,574 Crores in Q4FY24, accompanied by losses of Rs. 6,418.9 Crores to Rs. 7,674.6 Crores.
Reliance Industries
Reliance Industries Limited is engaged in the activities of hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables, retail, digital services, and many others.
With a market capitalization of Rs. 20,71,083 Crores, the shares of Reliance Industries Limited closed at Rs. 3,061.10 per equity share, up 1.11 percent from its previous day’s close price of Rs. 3,027.40.
In the recent 5G Spectrum Auctions Mukesh Ambani Owned Reliance Jio spent just Rs 973.62 crore, it is the lowest in spectrum auctions, to buy 14.4 MHz in select pockets. Jio bought 5G bandwidth only in the 1,800 MHz band as it doesn’t have any permits expiring in the near future
Its Revenue from operations grew by 10.83 percent from Rs. 2,38,957 Crores in Q4FY23 to Rs. 2,64,834 Crores in Q4FY24, accompanied by profits of Rs. 21,327 Crores to Rs. 21,243 Crores.
Written by: Bharath K.S
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