The auction for spectrum has concluded on 25th March,the 19th day which was started on 4th March, 2015. The auction was very aggressive and competitive between the 8 telecom companies as it stretched to 115 rounds. It has brought a windfall gain of Rs.1,09,874 crore to the government and this is the highest in the history of India. The central government’s expectation was Rs. 82,000 crore and still 11 per cent spectrum remained unsold.

In the spectrum auction held in 2010, the government had got Rs. 1.06 lakh crore which included the amount of Rs.30,000 crore forcibly taken from BSNL and MTNL. This time the auction amount is exclusive of BSNL and MTNL money.

Airtel,  Vodafone, Idea Cellular, Reliance Communications, Aircel, Reliance Jio Infocom, Uninor and Tata Teleservices were in the fray for 2G and 3G spectrum auction. The name of the successful bidders will be announced only after order on a case pending in the supreme court. However,it is learnt that Vodafone payout for the spectrum is likely to be the highest, followed by Airtel, Idea, Reliance Jio and Reliance Communications.

Telecom companies are required to pay an upfront payment of 33 per cent in case of 2100 MHz, 1800 MHz bands and 25 per cent for 900 MHz and 800 MHz bands within ten calendar days of the close of the auction. The winners have to pay the rest of the amount over a period of 12 years- two years moratorium and then ten yearly instalments.

The private telecom companies have already hinted of a hike in call and sms rates in the name of payment of higher cost for the airwaves in the auction.

Another important factor of the spectrum auction is that it has thoroughly exposed and belied the zero loss theory of the former Telecom Minister, Kapil Sibal.