Telecom Spectrum Auction Update - Earnest Money Deposit Caps Upside Spectrum Payout: ICICI Securities
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ICICI Securities Report
The Department of Telecommunications has disclosed the earnest money deposit (EMD) placed by each operator for the upcoming spectrum auction.
EMD helps to understand maximum spectrum payout. Operators can buy spectrum worth five to seven times of EMD.
Bharti Airtel Ltd. has put EMD of Rs 30 billion, which means maximum spectrum payout for Bharti is capped at Rs 150-210 billion, and Vodafone Idea Ltd. has put EMD of Rs 4.75 billion, which enables it to buy spectrum worth Rs 33 billion.
EMD shows operators are unlikely to bid for 700 megahertz band.
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