3G spectrum auction revenue crosses Rs.35,000 croreApril 27th, 2010 - 10:37 pm ICT by IANS
New Delhi, April 27 (IANS) India Tuesday concluded 88 rounds of spectrum auction for third generation (3G) telecom services in the country, with the government’s provisional revenue from the sale of airwaves crossing the Rs.35,000 crore-mark.At the end of the 15th day of the auction, which began April 9, the provisional winning price for a nationwide licence stood at Rs.8,662.45 crore, up 147.5 percent from Rs.3,500 crore reserve price fixed by the government.
For the second consecutive day, Mumbai attracted the highest bid value at Rs.1,329.34 crore. The provisional winning price for Delhi stood at Rs.1,284.04 crore, followed by Maharashtra at Rs.848.72 crore, according to data available on the website of the Department of Telecommunications (DoT).
Three service areas - Uttar Pradesh (East), Madhya Pradesh and Bihar - could not attract even a single player, the data showed.
Slots for three-four players are available in each of the 22 circles into which the country has been geographically divided for the 3G services, which 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.
The government has already given Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (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 at least Rs.35,017.77 crore from the auction.
This is on the presumption that every available slot gets filled at the provisionally approved price.
Communications Minister A. Raja Tuesday said the government expects to raise Rs.55,000 crore from the ongoing auctions of radio frequency spectrum for 3G telecom services and for rolling out broadband wireless internet services in the country.
“The revenue from 3G alone will touch Rs 40,000 crore…Putting both 3G and broadband spectrum together, we hope to get Rs.50,000-55,000 crore of revenue,” he said.
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.
This 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.
According to a senior DoT official, it may take another two-three weeks for the auction to be completed.
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.
- Revenue from 3G auction reaches Rs.48,677.47 crore - May 07, 2010
- 3G auction: Pan-India licence price nears Rs.9,000 cr level - Apr 28, 2010
- Pan-India 3G licence price crosses Rs.10,000 cr-mark - May 03, 2010
- Government to get over Rs.40,000 crore from 3G auction - May 02, 2010
- Revenue from 3G auction crosses Rs.60,000 crore mark - May 13, 2010
- Revenue from 3G auction nears Rs.55,000 crore-mark - May 10, 2010
- Revenue from 3G auction crosses Rs.65,000 crore mark - May 17, 2010
- 3G revenue crosses Rs.45,000 crore; all circles get bids - May 06, 2010
- Pan-India 3G licence price crosses Rs.10,700 crore - May 04, 2010
- Revenue from 3G auction now over Rs.62,000 crore - May 14, 2010
- 3G auction: Delhi attracts highest bid at over Rs.3000 cr - May 15, 2010
- Revenue from 3G auction at Rs.58,416 crore - May 12, 2010
- Auction of 3G spectrum kicks off Friday - Apr 08, 2010
- 3G, broadband auction may yield Rs.55,000 cr: Raja - Apr 27, 2010
- Revenue from 3G spectrum auction nears Rs.45,000 crore - May 05, 2010
Tags: 3g services, bihar, bsnl, data exchange, high speed data, internet tv, licence fee, madhya pradesh, maharashtra, presumption, price communications, private players, radio frequency spectrum, raja, rs 1, rs 8, service areas, spectrum auction, telecom services, third generation