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In 4 days, 71% of Spectrum worth over 1.5 B was bid on at a 5G Auction

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After four days, the 5G spectrum auction received bids totaling 1,49,855 crore.

After four days, the 5G spectrum auction garnered bids totaling 1,49,855 crore, and over 70% of the spectrum was sold to telecom companies vying for airwave rights required for next-generation networks in the world’s second-largest mobile market.

Here is a ten-point guide to the narrative

1.According to Telecom Minister Ashwini Vaishnav, around 71% of the available spectrum has been temporarily purchased. “This is an excellent answer,” he continued.

2. On Friday, the bid reached 231.6 crores after seven rounds. The government has not yet provided a breakdown of bids by individual players, but the most recent state-by-state statistics indicate 23 rounds have already occurred.

3. The telecommunications companies are enthusiastically competing in the auction despite initial fears that they stand to lose approximately 40% of their potential profits due to the allocation of some airwaves to firms for private networks.

5G Auction
5G Auction

4. Billionaire Mukesh Ambani’s Reliance Jio, Sunil Mittal-led Bharti Airtel, Vodafone Idea, and a unit of billionaire Gautam Adani’s flagship Adani Enterprises are in the race to bid for a 5G spectrum that offers speeds of approximately 10 times faster than 4G, lag-free connectivity, and the ability for billions of connected devices to share data in real-time.

5. Jio, which counts Facebook and Google among its investors, is anticipated to be the first Indian telecom to introduce 5G services.

6. Airtel and Vodafone have been under pressure since Jio initiated a price war in 2016. Both companies have reported losses in recent years, burdened by earlier spectrum payments to the government, however recent increases in mobile data pricing have helped Airtel begin to generate profits.

7. Adani Group stated at the beginning of July that it had no intention of entering the consumer market and will instead focus on providing solutions for private 5G networks.

8. A total of 72 GHz (gigahertz) of radiowaves valued at at least 4,300,000,000,000 were put up for sale. Spectrum in the low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz), mid (3300 MHz), and high (26 GHz) frequency bands are being auctioned off.

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9. Moreover, according to sources, the minister will meet with PE funds, VCs, investors, and banks in Mumbai on Saturday to discuss the growth trajectory of the telecom industry and hear their perspectives and concerns. According to sources, the move coincides with the government’s formulation of a new legal framework for the sector.

10. 5th Generation or 5G would enable solutions such as e-health, connected vehicles, more-immersive augmented reality, and metaverse experiences, life-saving use cases, and advanced mobile cloud gaming, among others, in addition to ultra-low latency connections that allow downloading of a full-length, high-quality video or movie to a mobile device in a matter of seconds (even in crowded areas).

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