3G auction: Pan-India licence price now over Rs.5,000 crApril 16th, 2010 - 10:04 pm ICT by IANS
New Delhi, April 16 (IANS) India Friday completed 34 rounds of auction to award radio frequency spectrum for third generation telecom services in the country, with a provisional winning price reaching over Rs.5,000 crore for a pan-India licence.
The provisional winning price — Rs.5,095.91crore is 45.6 percent up from Rs.3,500 crore fixed by the government as reserve price for a nationwide licence.
Slots for three-four players are available in each of the 22 circles into which the country has been geographically divided for these services.
The government has already given Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) spectrum for 3G services on the condition that they will pay the same licence fee as would be levied on private players after the auction.
Along with the fee that will be eventually paid by the two state-run enterprises for the licences, the government will provisionally get Rs.20,728.34 crore from the auction, which so far is well below the projected earning of Rs.35,000 crore.
This is on the presumption that every available slot gets filled at the provisionally approved price.
The Gujarat circle continued to attract the highest bid. The bid price for the state stands at 512.61 crore, followed by Delhi at Rs. 493.09crore and Tamil Nadu at Rs.483.79 crore, according to the latest data available on the website of the Department of Telecommunications (DoT).
Four states — Assam, Jammu and Kashmir, Orissa and West Bengal — could not attract even a single player.
Nine telecom companies — Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications — are participating in the online auction process, which began April 9.
It is a simultaneous auction for 22 circles over a secure website. At each round, the price is hiked from between 10-1 percent based on demand.
The auction is being held from 9 a.m. to 7.30 p.m. on all days, except Sundays and national holidays. The process will end only when the demand is equal to the number of slots available in each circle.
The bid data, including the winning companies’ names, will be made public after the auction’s completion and approval by the government. The winning firms will have to deposit the money within 10 days after the auction.
The successful bidders would be allowed to offer 3G services on a commercial basis from Sep 1.
The 3G services will facilitate much faster connectivity than what is available now and enable applications such as Internet TV, video-on-demand, audio-video calls and high-speed data exchange.
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- India concludes 22 rounds of 3G spectrum auction - Apr 13, 2010
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- Revenue from 3G auction reaches Rs.66,802.48 crore - May 18, 2010
- Pan-India 3G licence price crosses Rs.10,000 cr-mark - May 03, 2010
- Mumbai, Delhi neck-and-neck in 3G spectrum auction - Apr 24, 2010
- Pan-India 3G spectrum licence now nearly twice base price - Apr 22, 2010
- 3G auction: Pan-India licence price nears Rs.9,000 cr level - Apr 28, 2010
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