As expected, despite high reserve prices, 900MHz spectrum is seeing strong demand with price escalation ranging from 0-61%, with average price escalation of 29.8%. This has resulted in 26.2% and 30.9% escalation in spectrum renewal cost for Bharti and Idea to INR77.8bn and INR164.8bn, respectively, for 5MHz spectrum in each of the circle. The cost replenishment of entire spectrum has gone up by 24.9% and 29.8% to INR115.9bn and INR218.9bn, respectively. For 900MHz spectrum, there is still excess demand in 5 circles. Gujarat and UP (West), must-win circles for Idea, witnessed price escalation of 41.1% and 61.0%, respectively. Price for the Rajasthan circle, a must-win for Bharti, escalated by 21.5%.
2100Mhz Spectrum Demand
For 2100MHz spectrum too, there was only limited demand with no takers in four circles (Andhra Pradesh, Delhi, Karnataka and Mumbai), takers at reserve prices in 5 circles (Gujarat, Haryana, Maharashtra, Tamil Nadu, UP (West)), and 5% to 9.2% escalation in 8 circles. In 800MHz spectrum, there were buyers in 9 out of 20 circles, with 9.3% price escalation in the Madhya Pradesh circle.
