Lok Sabha Question No. 4491 (UNSTARRED), answered on 2017-03-29
Subject: Fresh Round of Spectrum Auction
Ministry: COMMUNICATIONS
Asked by: BHEEMRAO BASWANTHRAO PATIL, ELUMALAI VELLAIGOUNDER, SISIR KUMAR ADHIKARI, BAIJAYANT "JAY" PANDA, PR. SENTHILNATHAN, GEETHA KOTHAPALLI

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.4491 TO BE ANSWERED ON 29 TH   MARCH, 2017

## FRESH ROUND OF SPECTRUM AUCTION

## 4491. SHRI BHEEMRAO B. PATIL:

SHRI V. ELUMALAI:

SHRI SISIR KUMAR ADHIKARI:

SHRI BAIJAYANT JAY PANDA:

SHRI PR. SENTHIL NATHAN:

SHRIMATI KOTHAPALLI GEETHA:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the details of the 3G and 4G spectrum auction and the revenues generated there from during each of the last three years, operator-wise along with the reasons for shortfall in the said revenues, if any, with respect to budget estimates ;
- (b) whether the Government proposes for a fresh round of auction in near future and if so, the details thereof including plans, if any, to make the said process an annual affair along with the steps taken by the Government to expedite the same;
- (c) whether the Government plans to auction 5G spectrum in the said round of auction and if so, the details thereof including the estimated amount likely to be realized therein and if not, the reasons therefor;
- (d) the steps taken by the Government to provide adequate support to all the participants of the said auction and maintain a level playing field for all; and
- (e) whether no player evinced interest in the auction of 700 Megahertz band and if so, the details thereof and the reasons therefor including the complaints registered from the telecom companies with regard to the auction price?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

## (SHRI MANOJ SINHA)

- (a) The year-wise figures of revenue generated during each of the last three years, operator-wise are as follows;

| Year of Auction   | Name of the bands   | Name of the company                         |   Total Bid Amount (Rs. in crores) |   Upfront amount received (Rs. in crores) |
|-------------------|---------------------|---------------------------------------------|------------------------------------|-------------------------------------------|
| 2014              | 1800 MHz            | Bharti Airtel                               |                            9814.93 |                                   3369.74 |
| 2014              | 1800 MHz            | Idea Cellular Ltd.                          |                            6719.41 |                                   2217.41 |
| 2014              | 1800 MHz            | Vodafone Ltd.                               |                            8373    |                                   2763.09 |
| 2014              | 1800 MHz            | Telewings Communications Services Pvt. Ltd. |                             807.41 |                                    266.45 |
| 2014              | 1800 MHz            | Aircel Ltd.                                 |                             182.86 |                                     60.34 |
| 2014              | 1800 MHz            | Reliance Jio                                |                           11026.9  |                                   3638.89 |
| 2014              | 1800 MHz            | Reliance Communications                     |                             163.2  |                                     53.86 |
| 2014              | 900 MHz             | Bharti Airtel                               |                            8623.62 |                                   2155.91 |
| 2014              | 900 MHz             | Idea Cellular Ltd.                          |                            3704.8  |                                    926.2  |
| 2014              | 900 MHz             | Vodafone Ltd.                               |                           11261.2  |                                   2815.3  |
| Total             | Total               | Total                                       |                           60677.4  |                                  18267.2  |

| 2015   | 2100 MHz   | Bharti Airtel           |   5833.52 |   1925.07 |
|--------|------------|-------------------------|-----------|-----------|
| 2015   | 2100 MHz   | Idea Cellular Ltd.      |    577.98 |    190.73 |
| 2015   |            | Vodafone Ltd.           |   3703.93 |   1222.3  |
| 2015   | 1800 MHz   | Bharti Airtel           |   1040.71 |    354.48 |
| 2015   |            | Idea Cellular Ltd.      |   1919.76 |    633.52 |
| 2015   |            | Vodafone Ltd.           |    867.48 |    286.27 |
| 2015   |            | Reliance Jio            |   1886.87 |    622.66 |
| 2015   |            | Aircell Ltd.            |   2250    |    742.5  |
| 2015   |            | Reliance Communications |    393.42 |    129.83 |
| 2015   |            | Tata Teleservices       |    631.28 |    208.32 |
| 2015   | 900 MHz    | Bharti Airtel           |  22254.9  |   9095.18 |
| 2015   |            | Idea Cellular Ltd.      |  27639.8  |   6909.95 |
| 2015   |            | Vodafone Ltd.           |  21234.7  |   5308.66 |
| 2015   |            | Reliance Communications |   1834.76 |    458.68 |
| 2015   | 800 MHz    | Reliance Jio            |   7876.42 |   1969.11 |
| 2015   |            | Reliance Communications |   2062.32 |    515.58 |
| 2015   |            | Tata Teleservices       |   7220    |   1805.01 |
| 2015   | Total      | Total                   | 109228    |  32377.8  |
|        | 2500 MHz   | Idea Cellular Ltd.      |   2520.8  |   1260.4  |
|        | 2500 MHz   | Vodafone Ltd.           |   9220.8  |   4610.4  |
|        | 2300 MHz   | Bharti Airtel           |   7006.78 |   3508.39 |
|        | 2300 MHz   | Idea Cellular Ltd.      |    888.28 |    444.14 |
|        | 2300 MHz   | Reliance Jio            |   7895.06 |   3947.53 |
|        | 2100 MHz   | Bharti Airtel           |   4840    |   2770    |
|        | 2100 MHz   | Idea Cellular Ltd.      |   3985    |   1992.5  |
|        | 2100 MHz   | Vodafone Ltd.           |   7315    |   3657.5  |
|        | 1800 MHz   | Bharti Airtel           |   2396.8  |   1288.81 |
|        | 1800 MHz   | Idea Cellular Ltd.      |   5403.9  |   2701.95 |
|        | 1800 MHz   | Vodafone Ltd.           |   3743.5  |   1871.75 |
|        | 1800 MHz   | Reliance Jio            |   2153.91 |   1076.96 |
|        | 1800 MHz   | Aircell Ltd.            |    111.6  |     55.8  |
|        | 1800 MHz   | R.Com                   |     65    |     32.5  |
|        | 1800 MHz   | Tata Teleservices       |   4619.2  |   2309.6  |
|        | 800 MHz    | Reliance Jio            |   3623.49 |    905.87 |
|        | Total      |                         |  65789.1  |  32434.1  |

The  budget  estimate  (R.E)  of  revenue  from  spectrum  auction,  actual  realization  and  the shortfalls if any, is given below:

|   Sl. No. | Year    | DoT Target Projection (Rs. in cr.) (R.E)   | Achievement (Actual Receipts) (Rs. in cr.)   | Remarks      |
|-----------|---------|--------------------------------------------|----------------------------------------------|--------------|
|         1 | 2014-15 | Nil                                        | 10791.08                                     | No shortfall |
|         2 | 2015-16 | 21,587.00                                  | 21587.00                                     | No shortfall |
|         3 | 2016-17 | 33,194.00                                  | 33196.87 *                                   | No shortfall |

*Rs. 32434.10 crore received from Auction 2016 and Rs. 762.77 crores from sale of Partial/Residual Spectrum at auction determined price.

(b)    The  Department  has  conducted  spectrum  auction  every  year  from  2012  onwards  in  various spectrum bands as per availability. The Government has not yet decided to auction spectrum in near future nor made any plan to make it annual affair.

(c) The standardization of technology for 5G services is in progress at the International Telecom Union (ITU), Geneva, Switzerland. Further, the Government auctions spectrum without specifying any technology, subject to the condition that the technology deployed by the TSP is the one approved by international  organization  like  ITU  or  by  the  DoT.  It  is  for  TSPs  to  deploy  the  technology  (2G,  3G etc...) within the spectrum acquired by them which best serves market demands.

(d) The Government  ensured level playing field to all the participants in the spectrum auction held so far and would remain committed to do so in the future auctions also.

(e) No bid was received in any of the 22 Licensed Service Areas(LSAs) in 700 MHz in auction held in October 2016. Representations from TSPs were received regarding high price of 700 MHz spectrum.  Expensive ecosystem in 700 MHz band together with industry perception of high reserve price  appears  to  be  the  main  reason  for  no  bids  in  the  700  MHz  band.    In  addition,  companies appeared to be preserving cash to protect market share in the days to come.

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