Thaindian News

New Delhi, May 12 (IANS) Surpassing targets, the Indian government’s provisional revenue from sale of third-generation (3G) airwaves Wednesday reached Rs.58,415.72 crore ($12.9 billion) and the nationwide licence price touched Rs.14,466.02 crore ($3.21 billion) after 157 rounds of an auction to award spectrum for 3G telecom services.
Earlier, the government had said that it hoped to rake in Rs.55,000 crore ($12.2 billion) from both the 3G auction and the rolling out of broadband wireless Internet services in the country.

But with the aggressive bidding in few circles, the government is poised to get more than the estimated amount from the 3G auction alone.

At the end of the 28th day of the auction, which began April 9, the provisional winning price for the pan-India 3G licence was 313.3 percent higher than the Rs.3,500 crore reserve price fixed by the government.

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 faster connectivity and enable applications such as Internet TV, video-on-demand, audio-video calls and high-speed data exchange.

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.

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 pay the same licence fee as would be levied on private players after the auction.

Data on the Department of Telecommunications’ website showed that Mumbai continued to attract the highest bid at Rs.2,661.85 crore. The provisional winning price for Delhi stood at Rs.2,612.42 crore, followed by Karnataka at Rs.1,503.25 crore, Tamil Nadu at Rs.1,393.87 crore and Maharashtra at Rs.1,208.76 crore.

While Mumbai, Delhi, Karnataka, Orissa, Kolkata and Northeast witnessed more players in fray than the number of slots available, Jammu and Kashmir, Haryana, Himachal Pradesh, Madhya Pradesh, West Bengal and Rajasthan could not attract enough bidders.

This 3G auction is a simultaneous auction for the 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 on all days except Sundays and national holidays. 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 and the successful bidders would be allowed to offer 3G services on a commercial basis from Sep 1.