Reliance Jio Infocomm is all set to bid for spectrum and rush to acquire that auction aggressively, that had turned the expectations of rivals upside down and crossed their guesses. It just could be witnessed as they have filed Rs. 6500 crore as earnest money deposit (EMD). That is just equal to the gross amount of the top 3 companies Vodafone, Airtel, and Idea. That just implies, Mukesh Ambani’s owned company is aggressive to acquire the upcoming sale starting from 1stoct 2016.
Auction process hinted that Bharti Airtel, Vodafone India and Idea cellular made deposits of Rs 1,980crore, Rs 2,745crore and Rs 2,050 crore respectively. They also said that Tata Teleservices made a deposit of over Rs 1,000 crore, while Reliance Communications and Aircel put in around Rs 313 crore and Rs 120 crore, respectively.
A senior official informed ET,” according to EMDs computations’, the government could gain Rs 1.5 lakh crores by just selling at the reserve prices.
But the analyst has a different perspective, according to them, it’s the biggest sale of Rs 80,000 crore of government airways. Finance ministry will have the benefit of Rs 98,995 crore from telecom, which comprises of less than Rs 55,000crore with help of spectrum auction. It’s estimated that remaining amount could be produced from levies, services and dues from the auctions last year.
Jio’s bidding in auction astonished the industry as they assumed that Jio won’t show this aggressive bidding, rather they would just fill the coverage gap, as jio has already acquired the good position in the last auction and they had a pact with reliance communication shares and trading. One executive gave a statement,” they are surprised to see Jio’s deposit and this more than our estimation”.
The deposit made by Jio shows that they would buy some spectrum in the 700 Mhz band stated telecom veteran of Dua consulting foreign brokerage analyst disagreed. Bharti Airtel would buy 700 Mhz spectrum in East and West Uttar Pradesh and Bihar where prices are low comparatively.
Spectrum sale shocking highest deposit by Reliance Jio Rs 6,500 crore
