400-600 million more Indians will connect to the broadband Internet in the next few years, almost all wirelessly. Currently, most Indians have terribly slow net connections. Ambani's new $25B LTE network is coming on stream and will improve things. The 2300 MHz of spectrum on offer is enough to change that. It's four or five times as much as used by all the U.S. carriers. With robust networks, most users soon will be able to watch 4 hours of HD video daily (or other things that need bandwidth.) Without improvements, many are cautious about the cost of a single YouTube video.
The Indian press and analysts are predicting only $12-20B will be raised at the auction. The telcos don't have the cash or borrowing power to bid anything like $80B, more than the total market cap of the companies. The Indians set a reserve price for the different frequencies. If no one one bids that price, the spectrum is held over for another auction in a few years. Not selling all the spectrum this time probably won't have much effect in the long run. They couldn't build out that fast.
The new Indian broadband users may be more than the U.S. and Western Europe combined. Currently, Indian telcos have one of the world's worst ratios of spectrum to users, drastically limiting what users can do.