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Spectrum auction concludes, govt garners over Rs 1 lk cr

According to sources, the spectrum auction payout by various companies stand at — Vodafone likely to be at Rs 34,500 crore, Bharti Airtel at around Rs 27,500 crore, Idea (Rs 28,000 crore), Reliance Jio (Rs 11,000 crore) and Reliance Communications (Rs 2,300 crore).

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The telecom spectrum auction finally concluded Wednesday after 19 days and 115 rounds. The government has garnered over Rs 1 lakh crore at the close of bidding, however 11 percent airwaves stayed unsold.

According to sources, the spectrum auction payout by various companies stand at — Vodafone likely to be at Rs 34,500 crore, Bharti Airtel  at around Rs 27,500 crore, Idea  (Rs 28,000 crore), Reliance Jio (Rs 11,000 crore) and Reliance Communications  (Rs 2,300 crore).

GV Giri of IIFL expects the mainstream telecommunications company (telcos) to largely retain at least the minimum spectrum in their renewal circles. “I expect based on the information disclosed in the last three weeks by department of telecommunications (DoT) that Bharti would have increased their spectrum holdings in a few circles and I would expect that Idea has at least managed to get the minimum of 5 Mhz assured for itself,” he said.

Giri said that the auction has come at a steep price and therefore smaller companies will be burdened. “There could also be a few cases of companies losing out on their 900 Mhz because there was not enough of it or the price was too steep or the bidding was just too competitive,” he said.

He believes the market might start paying a lot more attention to 900 Mhz 3G as a differentiator between operators as “sooner or later the operators who have paid big money for the spectrum will start putting it to use in the best possible way which is to use it for data”.

“Overall if after the Supreme Court hears this case starting tomorrow, the judgement concludes with the auction considered valid and if the results seem to say that our current guesses and estimates are by-and-large accurate then the market will react very positively,” he added.

Bharti Airtel stock price

On March 25, 2015, Bharti Airtel closed at Rs 394.85, up Rs 0.55, or 0.14 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 289.80.


The company’s trailing 12-month (TTM) EPS was at Rs 28.61 per share as per the quarter ended December 2014. The stock’s price-to-earnings (P/E) ratio was 13.8. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.37.

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