Introduction
The auction of 2015 was a huge success. It resulted in a total revenue of Rs 1.1 lakh crores to the government. In most circles the auction price went well above the reserve price (by a factor of multiples)- indicating a huge demand for spectrum. The table under provides a snap shot of the ratio between the final auction price to the reserve price. The darker the shades of brown, the more intense the auction had been for that circle.
Strangely, in-spite of the strong operator interest, 11.2 % of the total spectrum offered in the auction remained unsold. If spectrum is that scarce, then why did the operators not take all of it when offered? The table below provides a breakup summary of the total quantum of unsold spectrum.
