3G Spectrum Auction – Circle Wise Bidding Expectations

The traditional press is silent about 3G spectrum auction, however, my channel checks indicate of a Telecom cabal. Early reports with Insiders have varying expectations for incumbents, mainly Reliance Communications and Idea Cellular. One section believes that Reliance Communications will throw its bid for all the circles while the other demonstrated a business case for RCom to bid aggressively in only 9 circles and stick to it and wait for more clarity on 3G spectrum for CDMA operators. I first wrote about Idea Cellular and Aircel bidding in coherence and is confirmed again by a top Foreign Financial Institution. This is how the scene so far looks like with no Foreign Operator likely to join the race.

  • Bharti Airtel – Likely to bid for all the 22 circles independently
  • Vodafone India – Will throw in its bid for 18 circles and is unlikely to participate in H.P, J&K, Assam and N.E
  • Tata DoCoMo -The new operator with disruptive pricing model and deep pockets is likely to bid in all the 22 circles

Idea Cellular – Aircel Complementing bid strategy: Circles where only Idea is likely to bid and Aircel will abstain are – Andhra Pradesh, Punjab, Haryana, UP(W), UP(E), MP and Rajasthan. Circles where Aircel will bid and Idea will abstain are – Kolkata, West Bengal, TamilNadu, HP and Orissa.

Top 10 Circles on the basis of Demand for 3G Spectrum in India are as follows:

  1. Delhi
  2. Mumbai
  3. Maharashtra
  4. Karnataka
  5. Gujarat
  6. Kolkata
  7. Tamilnadu
  8. Andhra Pradesh
  9. Kerala and
  10. Haryana

Stay tuned for more on the intensity of 3G Bidding, new operators strategy for 3G and how much the Government of India will be making, provided our Ministers don’t come up with some stupid First Come First Basis allotment 😉

Disclaimer – I have stock market positions in RCom, Idea and Airtel which can be safely neglected.