Spectrum auction to accrue govt Rs 30,000 crores

CIOL Bureau
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NEW DELHI, INDIA: Telecom ministry is expected to raise Rs 30,000 crores following the auction of 3G spectrum.


At the unveiling of the 3G policy, Minister of telecom and IT, Thiru A. Raja sounded confident that government would able to achieve the 30k figure, "We expect to touch Rs. 30,000 crores in revenues following the 3G spectrum auction," the telecom minister said.

The auction, which is open to all telecom players will be handled by a specialized agency and is expected to start in less than month's time and will be completed in another four months. A base price of Rs 2020 crores has been set for a license to provide nationwide 3G services.

The telecom ministry will be allowing five operators initially and if spectrum availability permits, another ten operators to roll out 3G services in the country.


Three slots for 3G spectrum have been awarded to CDMA players.

However, in Delhi and Mumbai, given the scarcity of spectrum, only three players can bid for auction of spectrum.

State PSUs, Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have reserved slot in each of 22 telecom zones and they will not be required to participate in the bid.


The ministry has also made it clear that foreign players with 3G experience will only be allowed to roll out 3G services in the country. "Indian players however have so such criteria to follow." Raja said.

For the first year, no spectrum charge will be charged on the winning bidders, though they have to cough 1 percent of their AGR to the government every preceding year.

The ministry is also said, "The consultation with the defense ministry was on a positive note and we will expect defense vacating spectrum soon."