3G auction...pan-India bid up 38% at Rs48.31bn

Bidding process for the 3G airwaves continued for the 5th day on April 15. Bids for the third-generation (3G) wireless spectrum increased by 38% compared to the base price fixed by the Department of Telecommunications (DoT). The 3G auction was kicked off on April 9. A provisional winning bid for pan-India 3G spectrum licence rose to Rs48.31bn on the fifth day of the 3G auction, the DoT said on its web site. The DoT has fixed a base price of Rs35bn for a pan-India 3G licence. As per the details given by the Department of Telecommunications (DoT), six more Clock Rounds were completed.

With this, the total number of Clock Rounds completed to date has come to 28. The Price in Round 28 for Delhi Service Area has been recorded at Rs4.64bn; whereas for Mumbai Service Area the price in Round 28 has been recorded at Rs4.42bn. Gujarat has recorded the highest price at Rs4.88bn in Round 28. Both Delhi and Gujarat circles have a base price of Rs3.2bn each. The 3G auction resumed on April 15 after a day's break on April 14 on account of the Ambedkar Jayanti holiday.

The Government is auctioning three slots of 3G airwaves in 17 telecom service areas. Only two slots are up for sale across the country for broadband wireless access (BWA) airwaves, which will begin after the 3G auction. Six existing major telecom service providers - Bharti Airtel, Vodafone Essar, Reliance Communications, Idea Cellular, Tata Teleservices and Aircel - are vying with each other for spectrum in all the 22 telecom circles. The Government expects to earn Rs350-450bn from 3G and BWA auctions. Telecom PSUs BSNL and MTNL have already been allotted 3G spectrum. The two have also launched their 3G mobile services. However, they would have to match the highest bids.