Day 5 of spectrum auctions indicated that auction activity is limited to a few circles. As excess demand is in maximum 3 circles in any band, the pace of price rise will be slow.
900MHz spectrum: Only marginal price rise on day 5
Prices for 900MHz have increased by an average 78.3% over reserve price, with only 1.7% price rise on day 5 versus 5.2% on day 4 and 11.8% on day 3. Spectrum renewal costs for Bharti and Idea have escalated to INR101.6bn and INR218.8bn, respectively, for 5MHz spectrum in each of the circles, an increase of 64.8% and 73.8%, respectively; the replenishment cost of entire spectrum has jumped 63.6% and 71.2% to INR151.8bn and INR288.8bn, respectively. For 900MHz spectrum, excess demand is only in the Haryana circle. Gujarat and UP (West), must-win circles for Idea, clocked price escalation of 58.7% and 224.3% over reserve prices, respectively. Price for the Rajasthan circle, a must-win for Bharti, escalated 89.4%.
Demand for 800MHz spectrum is limited to 14 circles, while the average price increased 5.8% on day 5. 800MHz and 1800MHz spectrum have excess demand in 3 circles and 1 circle, respectively. There is no excess demand in 2100MHz spectrum. In 1800MHz and 2100MHz spectrum, price rise was limited to only 1 and 3 circles, respectively, on day 5.
