India's Finmin wants to double 3G base price

NEW DELHI, INDIA: India's finance ministry wants to double the floor price set for a global auction of 3G and wireless broadband spectrum, a move that could further delay bids due to start on January 30, the Economic Times said on Friday.

The Telecom Ministry had set a base price of 20.20 billion rupees ($412 million) for 3G spectrum in all of India and 11.10 billion rupees for broadband wireless access spectrum.

As India is the world's fastest growing market for wireless services, adding more than 10 million mobile users a month, the bids are expected to be much higher and the telecoms minister aimed to collect up to 400 billion rupees from the auction.

Citing sources at unnamed companies, the Economic Times said the Finance Ministry had sent a letter to the Telecoms Ministry, asking it to submit a fresh proposal to India's cabinet. This could again delay the auction that has already been deferred by two weeks, it said.

The Press Trust of India also said the note suggested doubling the base price for 3G spectrum to 40.40 billion rupees.

Any change in telecom tariffs in India has to be approved by the sector regulator and this would take some time.

Spokesmen for the finance and telecoms ministries could not be immediately reached for comment.