The story of Indian spectrum auction is complex, and it has taken me a while to collate the data used in this note. The note has gone longer than I would have liked, but anything shorter would have diluted the story that I am planning to tell. I apologize in advance.
In this decade, India has seen a series of spectrum auctions in quick succession. This resulted in a total industrial outflow of Rs 2,90,000 Cr ($ 47 billion USD) from spectrum auctions alone (not counting one-time payment for liberalizing administratively assigned spectrum). It all started with the 2100 (3G) & 2300 (BWA) auctions in 2010. Then in 2012, the 800 MHz & 1800 MHz band were auctioned. The spectrum for this auction got released due to the cancellation of 2G licenses by SC (Supreme Court) in 2011. The 800 MHz band was again auctioned in 2013, as there were no takers for this band in the 2012 auctions. Then in 2014, the 900 & 1800 MHz band were auctioned. The spectrum for this auction got largely released from the expiring license, and the unsold inventory left in the 1800 MHz from the 2012 auctions. Then in 2015, 800, 900, 1800, 2100 MHz band got auctioned. The spectrum for this auction emanated from expiring licenses in the 900 & 1800 MHz band, and some fresh spectrum released in the 800 & 2100 MHz band. Since 2010, the spectrum prices have steadily increased across all bands and for some disproportionately – making some operators look foolish, who stayed out in the hope that the prices will get rationalized in the future to reflect market realities.
