India 3G Auction

India 3G Auction

India 3G Auction

India 3G Auction

3G Auction Update

3G Auction Update

3G Updates - India Telecom

3G Updates - India Telecom

3G Updates

3G Updates

3G Auction Results

3G Auction Results

3G auction ends...Govt set to pocket a cool Rs677.19bn

India's auction of third-generation (3G) mobile airwaves finally ended on May 19, and the Government's bounty from the same swelled to a whopping Rs677.19bn as against projection of Rs350bn from the combined 3G-BWA auction. This includes the amount payable by MTNL and BSNL. Meanwhile, bids for one set of pan-India 3G mobile licences reached Rs168.28bn on the 34th day of the auction compared to the base price of Rs35bn. Price per block of 2x5 MHz Pan India spectrum is Rs167.51bn. The 3G auction started on April 9. BWA bidding is to start two days after the close of the 3G auction. The BWA auction is also expected to be equally competitive, as 11 players are in the fray for just two slots for each circle, while the reserve price for pan-India licence is Rs17.5bn.

Out of a total of 22 circles for the 3G spectrum, 17 have three slots, while in rest of the five circles, four blocks of spectrum are available. The successful bidders would be allotted air waves in September after the spectrum is vacated by the defence forces. Proceeds from the two auctions would help the Government bridge the fiscal deficit. India's fiscal deficit may come down to 5.2% of GDP from the estimated 5.5% of GDP. The Government has pegged the fiscal deficit at Rs3.81 lakh crores for FY11.

Nine companies - Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, STel and Videocon Telecommunications - took part in the online auction. Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL), who have already been issued 3G airwaves, will also have to pay the winner’s price. The winning firms will have to deposit the money within 10 days from now. As per the details given by the Department of Telecommunications (DoT), three more Clock Rounds were completed on May 19. With this, the total number of Clock Rounds completed to date has come to 183. The auction results are provisional and subject to approval by the Government, the DoT said.

3G - India

3G - India

India 3G Auctions

India 3G Auctions

3G auction closes; pan-India licence bid touches Rs 168.28 bn

Auction for 3G licence ended on Wednesday, with bids for pan-India licence touching Rs 168.28 billion that ensures the government a revenue of Rs 700 billion -- double the amount it expected to collect.

According to sources, Bharti, Idea and Vodafone Essar have won in some of the circles in the auction that lasted 34 days.

Details of who have secured all-India licence are awaited.

As per the latest figures, the pan-India licence bid touched Rs 168.28 billion compared to the reserve price of Rs 35 billion.

With the close of auction for 3G telephony spectrum, the government would commence the auction for Broadband Wireless Access (BWA) spectrum in two days.

Nine leading mobile operators, including Bharti Airtel, Vodafone, RCom and the Tatas, had entered the auction to grab spectrum for 3G services, which would allow users to access high-speed data downloads on mobile phones.

Slots were only available for three operators in most states, while four were available in Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.

3G Auction...All-India price at Rs113.27bn

The Government is all set to pocket a cool Rs500bn from the auction of third-generation (3G) mobile spectrum if one includes the matching bids from state-owned Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL). At Thursday's close, the Centre is expected to garner about Rs456.90bn from 3G auction alone as against projection of Rs350bn from the combined 3G-BWA auction. So, quite clearly, the final figure from the 3G-BWA auction process could well be somewhere around Rs600bn. "The revenue from 3G auction alone may cross Rs400bn. Revenues from 3G and Broadband Wireless Access (BWA) spectrum put together may touch Rs500-550bn," Telecom Minister A Raja was quoted as saying last week.

Meanwhile, bids for one set of pan-India 3G mobile licences reached Rs113.27bn, more than double the base price of Rs35bn, on the 23rd day of the auction. As per the details given by the Department of Telecommunications (DoT), four more Clock Rounds were completed on Thursday. With this, the total number of Clock Rounds completed to date has come to 132. The 3G auction started on April 9. BWA bidding will start two days after the 3G auction concludes.

Proceeds from the two auctions would help the Government bridge the fiscal deficit. India's fiscal deficit may come down to 5.2% of GDP from the estimated 5.5% of GDP. The Government has pegged the fiscal deficit at Rs3.81 lakh crores for FY11. Mumbai and Delhi continued to be among the most sought-after circles with highest bids of Rs19.87bn and Rs19.20bn, respectively. The reserve price for both the Mega Metro circles is Rs3.2bn. Maharashtra's bid stood at Rs10.62bn while that for Andhra Pradesh was at Rs9.79bn, and Gujarat at Rs9.45bn.

According to the DoT, the bidding activity requirement was set at 100% on Thursday. The 3G auction would continue till the available number of slots is equal to number of bidders in all 22 circles simultaneously. Out of a total of 22 circles for the 3G spectrum, 17 have three slots, while in rest of the five circles, four blocks of spectrum are available. The successful bidders would be allotted air waves in September after the spectrum is vacated by the defence forces. The BWA auction is also expected to be equally competitive, as 11 players are in the fray for just two slots for each circle, while the reserve price for pan-India licence is Rs17.5bn.

India Telecom 3G Update

India Telecom 3G Update

3G Auction...Pan-India price nearly doubles

Bidding process for the 3G airwaves continued into the 11th day on Thursday. Bids for the third-generation (3G) wireless spectrum nearly doubled from the base price fixed by the Department of Telecommunications (DoT). A provisional winning bid for pan-India 3G spectrum licence rose to Rs69.68bn on Thursday, 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 DoT, six more Clock Rounds were completed on Thursday. With this, the total number of Clock Rounds completed to date has come to 64.

Delhi continues to be the most lucrative of the 22 service areas, attracting top bid of Rs8.5bn. Mumbai is at the second spot with a bid of Rs7.5bn and Tamil Nadu is in the third spot with a bid of Rs7.1bn followed by Maharashtra at Rs6.97bn and Karnataka at Rs6.38bn. The bid for Andhra Pradesh stood at Rs6.26bn while that for Gujarat was at Rs5.83bn. In almost 50% of the country, spread across 16 states, the demand for 3G airwaves has been negative. Jammu & Kashmir, all seven North East states, Orissa and Himachal Pradesh have witnessed negative bids. The 3G bid prices have not seen any material rise in these places after 11 days of bidding. Other regions that are witnessing negative bids, include Haryana, UP (West), MP, Punjab , Kerala and West Bengal.

The 3G auction was kicked off on April 9. The 3G auction resumed on April 15, as April 14 was a public 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 would start two days after the closing of 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 Telecom Ministry raised its estimates of windfall from the 3G and BWA auction. The Government now expects its 3G and BWA auctions to raise Rs500bn (US$11.2bn), much higher than the Government's budget estimates of Rs350bn, Union Telecom Minister A. Raja said on April 23. Earlier in the week, Raja had said he expected the auctions to raise Rs450bn. "Everyday it is going up," he told reporters outside the parliament, referring to the bids for 3G spectrum, for which the auction is currently underway. 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.

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.

3G - India Telecom

3G - India Telecom

Govt expects to earn Rs450bn from 3G, BWA auctions

The Government expects to pocket Rs450bn from the auction of airwaves for 3G mobile services and high-speed broadband services, Telecom Minister A. Raja has been quoted as saying by a business daily. In the Union Budget, announced in end-February, the Government estimated that it will earn Rs350bn from the combined auction.

The auction for 3G spectrum will begin in a few minutes and last for several days till winners for all the circles are picked. It will be an e-auction involving multi-stage bidding over the Web. Though winning bidders have to deposit money in 10 days of the auction, they will get 3G radio waves only in September.

The operators will have to match DoT’s base price, which will be revised at each round. The revisions can range between 10%-1% over the previous round’s price depending on demand. Each slot in each service area will be auctioned separately but simultaneously by the auctioneers, Rothschild and DotEcon.

Six mobile companies - Bharti Airtel, RCOM, Vodafone, Idea, Tata Tele and Aircel are expected to compete for the three pan-India 3G spectrum allocations. The remaining three bidders in the race for 3G spectrum are Videocon, S-Tel and Etisalat.

Bidding for broadband spectrum will begin two days after the completion of 3G spectrum auction. The Government has received applications from 11 companies for the BWA spectrum.

The base price for pan-India 3G airwaves has been pegged at Rs35bn, while for BWA airwaves, it is Rs17.5bn. The Government will auction three slots of 3G airwaves in 17 telecom services areas and four in the other five zones. Only two slots will be up for grabs for broadband airwaves.

MTNL and BSNL have already been awarded spectrum for both 3G and WiMax services but they will have to match the highest bid for each of the services.

3G auction...mad rush among incumbent players

Telecoms majors like Bharti Airtel, Vodafone Essar and RCOM submitted applications for the long overdue third-generation (3G) mobile spectrum in an April auction. These companies submitted bids for all of India's 22 telecoms zones. Abu Dhabi-based Etisalat, which has a telecoms joint venture in India, also applied for the 3G spectrum bid, while reports said that Tata Teleservices, India's fifth-ranked mobile firm and 26% owned by NTT DoCoMo, submitted its interest to bid on Thursday. Reports also said that Videocon has also put in a bid for 3G spectrum, while Uninor (a JV between Telenor and Unitech) decided not to joint the mad rush as did a spate of big global names.

Tata Communications, Tikona Wireless and London-based Augere submitted applications for the forthcoming auction of spectrum for wireless broadband access (BWA). Qualcomm announced that it has filed an application to bid in the upcoming BWA auction in the 2.3 GHz band. Bharti, Vodafone and RCOM also expressed interest in BWA spectrum. The bidding for BWA spectrum is expected to be aggressive as only two blocks of spectrum are available across the 22 circles. Spectrum winners will not automatically get a unified licence or ISP licence on winning the bid. They will have to procure it by paying the necessary fees. BWA spectrum would attract a charge of 1% of annualised gross revenues from BWA services.

The 3G auction starts from April 9, and the BWA auction will kick off two days after that, the Government said last month. March 19 was the last date for submitting interest to participate in the auctions. Bidding for 3G would start from a government-fixed base price of Rs35bn (US$770mn) for all-India radio waves, but analysts expect companies to spend between US$1bn to US$1.5bn due to the huge demand for scarce spectrum and cut-throat competition. For all-India BWA spectrum, the base price is Rs17.5bn. In the Union Budget announced last month, the Centre has penciled in revenue projection of Rs350bn (US$7.7bn) from the twin auctions

Govt remains in a fix over 3G auction

With only a month and a half to go before the current fiscal year ends, the fate of the already delayed 3G auction is still hanging in balance. The Government is still not certain whether it can hold the 3G auction before the end of March. At the same time it is not perturbed in case it fails to meet the deadline. The Finance Ministry reportedly cleared the decks for 3G auction by the end of March, by assuring the Law Ministry that it would give spectrum to all the successful bidders by September 1 instead of selectively releasing the airwaves. But, the Government is not sure if it can conduct a 3G wireless auction before the end of the current fiscal year, Finance Secretary Ashok Chawla said. "The issues relating to 3G auction have been resolved, but I can't say whether the actual auction will happen before March 31," Chawla said. At the same time, Cabinet Secretary K M. Chandrasekhar said that it does not matter if the 3G auction happens in this fiscal year (FY10) or the next (FY11). He added that Centre would like to garner maximise possible revenue from the 3G auction and would set a date accordingly. "I think all the issues have been resolved," Chandrasekhar told reporters in New Delhi. "I don't think it really particularly matters if this year or next year."

The 3G auctions for all-India licences were initially scheduled to begin on February 13 but were postponed to a time-frame between mid-February and March 5. It is not clear whether the DoT will follow this schedule or announce a new set of dates within the financial year. 3G auction has been deferred time and again on differences between the Telecom Ministry and the Defence Ministry over vacation of spectrum by the armed forces. Lack of revenues from 3G auction will hurt the fiscal position with budget deficit at a 16-year high. The Government has projected a fiscal deficit of 6.8% of the GDP for the current fiscal year.

3G spectrum auctions likely from Feb 13: report

Bidding process for the third generation (3G) spectrum is likely to start from February 13, according to reports. The last date for accepting applications will be January 25 after which mock auctions will be held on February 10 and the DoT will issue notice inviting applications (NIA) on January 10. The new dates have been set following a decision by the Empowered Group of Ministers to release 3G spectrum by August 2010. Reports stated that mobile operators winning the auction for 3G mobile spectrum might be asked to pay the entire bid amount upfront within 20 days after the bidding process is completed. They will however get the spectrum in August only. The successful operator would have to pay 25% of the bid amount in five days of the auction closing and the remaining amount in 15 days. This will be the fourth time in the last one year that the DoT will be setting dates for 3G auction. Earlier attempts to go ahead with the auction could not materialise after the Defence Ministry had raised objections with respect to releasing spectrum.

3G auction to be held as per schedule: Govt

Telecom Minister A. Raja said that the Government plans to start auctioning third-generation (3G) wireless spectrum as scheduled from January 14. Spectrum will be given to four successful bidders, excluding BSNL and MTNL. However, all the successful bidders will get 3G spectrum simultaneously only in August 2010. "Auction will be according to the schedule. Allotment of spectrum to maintain the level playing field will be by August 2010," the minister stated. "Allotment to the four service providers will be simultaneous," he added.

Following the empowered Group of Ministers' (eGoM) decision, the Department of Telecommunications (DoT) will soon issue a notice inviting applications for the sale of spectrum. The notice is a legally binding document on the auction and will specify all details regarding the sale of spectrum, including its exact availability in each circle and the specific bands for the winners.

Ratan Tata, Chairman of the Tata Group, has written to a top government functionary saying that all successful bidders should be given air waves simultaneously to keep the playing field level. Tata's observation follows a proposal by the DoT to allocate spectrum to three successful bidders in tranches. According to the DoT's plan, 3G spectrum would be given in phases with the highest bidder in a circle getting it immediately, while the second and third players will get air waves only by July and September 2010, respectively.

Mobile number portability, the facility that allows customers to retain their mobile numbers while changing operators, will be implemented from early 2010. This may affect operators who do not win 3G spectrum as they may see their high-end customers migrating to rivals. The UPA government is keen to hold 3G auctions this financial year as it is targeting to raise Rs300-350bn from the process to help bridge the fiscal deficit. But, if the auction revenue does not come this financial year, the Government's math will go wrong.