New Delhi, July 18: With the race to auction 5G spectrum intensifying, billionaire Mukesh Ambani’s Reliance Jio has deposited an earnest money of Rs 14,000 crore, while rival Adani Group has deposited a meager Rs 100 crore. Earnest money refers to the amount of airwaves a company bids in an auction.
Where the earnest money deposit suggests that the country’s largest telecom company Jio may bid very aggressively in the upcoming auctions, the Adani Group may be looking to buy the minimum spectrum required to set up a private network. The earnest money of all the four applicants seeking 5G radio waves is up to Rs 21,800 crore, which is much higher than the Rs 13,475 crore deposited in the 2021 auction, when three players were in the running.
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A total of 72 gigahertz (GHz) spectrum worth at least Rs 4.3 lakh crore will be put on the block during the auction beginning July 26. According to information released by the DoT on Monday as part of a list of pre-qualified bidders, Reliance Jio has deposited an earnest money deposit (EMD) of Rs 14,000 crore, the highest among the four players for spectrum bidding.
Adani Data Networks has an EMD amount of Rs 100 crore, indicating a muted and limited spectrum demand on its part. Earlier this month, billionaire Gautam Adani’s group confirmed it was in the race to acquire spectrum, which it said could be used as a tool to support its businesses from airports to power and data centers. To build a private network.
Adani Group had made it clear that its intention is not in the field of consumer mobility. According to the DoT website, Sunil Mittal-led Bharti Airtel has put in Rs 5,500 crore as EMD, while the amount for Vodafone Idea is Rs 2,200 crore.
Usually, the EMD amount indicates the players’ appetite, strategy and plan to pick up spectrum in the auction. It also determines the eligibility points through which telcos target specific amounts of spectrum in different circles. Market watchers say that a telco has the potential to go after radio waves of up to 7-8 times the EMD amount deposited by them, although players can maneuver and operate depending on the auction process and the strategy adopted. Headroom for flexibility. rivals.
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An industry expert, on the condition of anonymity, estimated that based on the EMD, Jio could bid around Rs 1.27 lakh crore, Bharti Airtel Rs 48,000 crore, VIL Rs 20,000 crore and Adani Data around Rs 700 crore. With an EMD of Rs 14,000 crore, the eligibility marks allotted to Jio for the auction is 1,59,830, the highest among the list of four bidders, as per the details provided by DoT.
The eligibility marks allotted to Airtel is 66,330, while that of Vodafone Idea is 29,370. Adani Data Networks received an eligibility score of 1,650 based on its deposits. The total assets of the promoter Adani Enterprises have been taken into account while computing the eligibility of Adani Data Network, resulting in a total net worth of Rs 4,979 crore.
The net worth of Reliance Jio Infocomm, a subsidiary of Jio Platforms Ltd – which holds Reliance’s digital assets – stood at Rs 1,97,790 crore. Vodafone Idea has a negative net worth of Rs 80,918 crore, while the paid-up capital is Rs 32,119 crore.
Bharti Airtel has total assets of Rs 75,886.8 crore. The auction will be conducted for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.
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While 5G spectrum will be auctioned in nine frequency bands, the notice inviting applications – a bidding-related document issued by the DoT – states that tech firms will be required to lease 5G spectrum for their captive non-public networks. will be allowed. telecommunication companies. The bid document said that the direct allotment of spectrum to tech companies would be in compliance with the sector regulator’s recommendations on aspects such as demand studies and the modalities of such allocation.
In the previous auction held in early 2021, Reliance Jio Infocomm had deposited Rs 10,000 crore as earnest money, while Bharti Airtel and Vodafone Idea had deposited Rs 3,000 crore and Rs 475 crore respectively. In the auction held last year, Reliance Jio bought spectrum for Rs 57,122.65 crore, Bharti Airtel for Rs 18,699 crore and Vodafone Idea for Rs 1,993.40 crore.
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