Day five of the auctions for 2G spectrum saw telecom firms clamouring for 1,800 MHz in the Assam circle. While demand exceeded the quantum of spectrum available in this circle, the closing bid price for this circle on Friday was 126% above its base price.
In the three metros -- Delhi, Mumbai and Kolkata -- where 900 MHz spectrum is being sold, demand remained optimal with Delhi's closing bid going up by 90% over its base price. Mumbai and Kolkata bids remained similar to Thursday's closing price.
Overall, operators are now moving into the last phases of the auction and trying to buy as much spectrum possible while keeping prices on a rational level.
The closing bid price on Friday stood at Rs 54,601 crore, up 7% from Thursday's closing amount.
At the end of Day 5, the bids had gone up to Rs 22,689 crore for the three metros – Delhi, Mumbai and Kolkata – in the 900 MHz band, which is around 9% up from Thursday's close. Mumbai attracted bids worth 71% higher than base price, while Kolkata's closing price was 56% more than its reserve price.
In the 1,800 MHz band, where spectrum is being auctioned in all the 22 circles, got bids to the tune of Rs 31,912 crore, up 6.33% than Thursday's close. A total of 35 bidding rounds have been conducted in this auction.
Participation in the 1,800 MHz band improved remarkably with Assam and UP (W) circles getting higher demand than the spectrum blocks available in these circles. In all other circles there was no excess demand.
While the bid price at the end of day five for Gujarat was 39% over the base price, Uttar Pradesh (West) bids went 43% higher than reserve price. Other circles, including Delhi, J&K, Madhya Pradesh, Maharashtra, UP (E), West Bengal and Bihar also saw the bid price at close of day four, exceeding the reserve price. In all other circles, the bid price remained at the base price level.