Indian Media Magazine

The Pan-India price for a slot of Broadband Wireless Spectrum at the end of just five days of India’s BWA Auction, has zoomed ahead of the BWA spectrum price, pushed up largely due to high demand for a few circles, namely, Delhi, Mumbai and Karnataka. The rate of increase is now dropping – 19.6% for the day, compared to 25.37% the previous day; the price had risen more than 30% on each of the first three days. Note that the minimum activity level requirement remains at 80%, and bids will increase as levels are pushed up first to 90% and then 100%.

The current Pan-India price, at the end of 34 clock rounds, was Rs. 4523.08 cr (258.46%) above the base price of Rs. 1750 crore, rising Rs. 1027 cr on the day. Government revenue stands at Rs. 18,819.24 cr, of which Rs. 12546.16 cr will be from private operators, 11 of whom are bidding.

The pace of growth in price has undoubtedly been higher than in case of the 3G Auction, which took 9 days to cross the Rs. 6473 cr mark, and 25 days to rise more than 258% of its base price. But the bids in the BWA auction are heavily lop sided: price for 11 circles did not increase on the day.

– Delhi, Mumbai, Karnataka are priced on par, increasing by Rs. 200 cr (32.63%) on the day to Rs. 812.86 cr. Demand for Delhi and Mumbai circles was in excess by 6 bids, with 8 bids each. Karnataka received 5 bids, in excess by 3 bids.
– Price for Maharashtra increased by 15.35%, 94.07 crore. Maharshtra is priced at Rs. 707.03 Cr. Two bids, no excess demand
– Andhra Pradesh is priced at Rs. 677.04 cr, up Rs. 64.08 cr (10.45%) for the day. The circle received two bids, and par-demand.

– Price for Tamil Nadu went up Rs. 144.29 cr (24.09%) to Rs. 743.17 cr. The circle received 6 bids, in excess of available lots by 4 bids.
– Surprisingly, price for Gujarat has remained the same for the last three days of bidding, at Rs. 444.7 cr. Gujarat once gain showed deficient demand.
– Kolkata registered the highest increase for the day, up 36.2% (Rs. 100 cr) to close at Rs. 376.28 cr. In the last round, it received 5 bids, in excess by 3 bids.

Compare this with the 3G auction, where it took 14 days to register a 139% increase. The minimum revenue that the Indian government should expect from the BWA auction is Rs. 12551.46 crore, of which Rs. 8367.64 crore will be from private applicants.

Related:

- Download the BWA results for day 5 here
- An explanation on how the auction is proceeding here
- View 3G Auction results here

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