Why Reliance Jio buy more spectrum in the Auction 2021

Main question arises Why Reliance Jio buy more spectrum than expected in the spectrum auction 2021??

They have purchased a total spectrum of Rs 57122 crore.

Jio Dhan Dhanadan

The spectrum auction process is over. Jio bought 488.35 Mhz airwaves for 800, 1800 and 2300 megahertz bands. For this, they spent a total of Rs 57122 crore. Airtel has acquired 355.45 MHz spectrum worth Rs 18699 crore. Vodafone Idea has bought 11.80 MHz of airwaves for 1993 crores. In this way, a total of 855.7 MHz airwaves were sold and through this the government got massive Rs 77814 crore.

Here a question is arising in everyone’s mind that after all, why Reliance Jio buy more spectrum in the auction 2021 , what is its future plan? According to Credit Suisse’s report, Jio is behind its competitor in terms of spectrum. Its subscribers are continuously increasing and the network is getting weaker due to limited spectrum available. Jio’s network has been facing problems for some time, due to which users are switching back to Airtel.

Still Airtel ahead of Jio in spectrum

According to the report, despite buying such a large spectrum, Jio has the least spectrum among the three telecom companies. After the new purchase, Jio has a total of 1717 MHz, Airtel has 2107 MHz and Vodafone Idea has 1768 MHz spectrum. In December, the number of consumers of Jio was 40.87 crore. In such a situation, experts say that Jio wants to reduce the difference between the spectrum market and the subscriber market share.

Payment will be made in the next 18 years

Let you know that Reliance Jio has bought spectrum in all 22 circles. After this purchase, Reliance Jio will have a total of 1717 mega hertz (uplink downlink), which is 55 per cent more than before. Reliance Jio is expected to be further strengthened by the purchase of spectrum. The spectrum prices will be paid by the telecom companies in the next 18 years. Reliance Jio is in a strong position compared to competitors as Jio has spectrum available for an average of 15.5 years.

Hope you liked the article about the latest spectrum auction by the three Telecom Companies.

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