Jio to splash most cash in 5G auction with Airtel following behind, say analysts

Reliance Jio is expected to spend the most in 5G spectrum auction that will start today at around 10 am, followed by Bharti Airtel whereas modest participation is seen from Vodafone Idea and Adani Group, analysts said based on Earnest Money Deposit (EMD) data.

The 700 megahertz (MHz) spectrum band can be crucial for telcos if they want to expand in rural areas. However, the rollout is expected to be more intense in regions where use is high, according to Chandrasekhar.

Other spectrums from the low-frequency band available for bidding are 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, and 2300 MHz. The mid-frequency band consists of 3300 MHz and the high-frequency spectrum band is 26 GHz.

5G auction is expected to generate between Rs 80,000 crore and Rs 1,00,000 crore in revenue, enabling ultra-high speeds that are 10 times faster than 4G, as well as modern products and business models. The spectrum allocation will be done by August after the auction.

The value of the highest band, 72 GHz of spectrum, is rated Rs 4.3 lakh crore. However, the telcos have sought price cuts of over 90 percent in the price reserve. Many giant tech companies like Facebook and Google are seeking allocation of the spectrum at nominal rates, pitting the incumbent telcos against them in the 5G race. R Chandrasekhar, former telecom secretary, told CNBC TV18 that considering the total EMD the bidding amount could reach around "Rs 2 lakh crore against the total spectrum available.

While Adani group recently made a paltry Rs 100 crore EMD, Mukesh Ambanis Reliance Jio made an EMD of Rs 14,000 crore. The amount of bandwidth that a corporation can bid for in the auction is reflected in EMD.

Operators will bid for 5G networks, reducing SUC (spectrum usage charges) and enhancing existing spectrum bands, resulting in demand mainly led by 3.3/26 gigahertz (GHz) spectrum bands.