Indian Spectrum Outflows
India has seen six auctions in past with a total outflow of Rs 3,55,798 Cr. Some portion of it has been paid upfront and some are deferred over a period of 10 years. The purpose of this note is to provide a summary of the overall picture broken down by operators so that it can act as a ready reference for future discussion.
Total Industry Outflow
Bharti contributed the most with 23.2% (standalone), and 25.5% (plus Uninor, Tikona, Videocon) followed by Vodafone 22.1%, Idea 17.3%, RJIO 13.4%, MTNL & BSNL, 8.3%, Tata 5.2%, RCOM 3.7%, Aircel 3.5%, Uninor 1.4%, MTS 1%, Videocon 0.6%, and Tikona 0.3%. The absolute values and yearwise breakup is indicated in the above figure.
Total Upfront Payment
Here some interesting facts emanate, like those who participated in the 2010 auctions paid a larger proportion of their overall industry outflow as an upfront payment. Hence, Bharti paid 23.1% (standalone) and 24.9% (plus Uninor, Tikona, Videocon), followed up Vodafone 17.8%, MTNL & BSNL 15.2%, Idea 13%, RJIO 12.9%, Aircel 5.5%, Tata 5.2%, RCOM 5%, Uninor 0.8%, Tikona 0.5%, MTS 0.5%, and Videocon 0.4%. The total upfront payment of the industry is Rs 1,94,783 Cr.
Total Deferred Payment
Here also the facts are interesting. Vodafone has the maximum deferred payment obligation of 27.3%, the Bharti's (plus Uninor, Tikona, Videocon) @ 26.3%. Then followed by Idea 22.5%, RJIO 13.9%, Tata 5%, RCOM 2.1%, Uninor 2%, MTS 1.7%, Aircel 1.1%, and Videocon 0.9%. Total deferred payment of the industry is Rs 3,14,033 Cr.
Please note this note does not include the money paid by players for liberalizing some spectrum acquired bundled with the license before 2010, but its value proportional to the overall value is negligible.
(Views expressed are mine and do not reflect that of my employer)