3G Spectrum Auction

The Union Budget estimate of 2009-10 includes a sum of Rs 35,000 crore as expected revenue from auction of 3G spectrum, Finance Minister Pranab Mukherjee said in Budget papers.

Just few days before the Budget, Government had decided to fix the reserve price at Rs 4,040 crore and allow only seven operators to offer 3G mobile services.

The auction, when happens would allow telecom firms to offer services such as high-speed Internet and video downloads on mobile phones. Telecom Minister A Raja had already said that the auction could happen by December of this year. The government had initially aimed to get Rs Rs.20,000 – Rs.25,000 crore.

The sale has been deferred twice. The finance ministry wanted the floor price of the auction to be Rs 4,040 crore double of what the DoT had suggested.

According to the guidelines, the government planned to conduct auction for 20 of India’s 22 telecom zones and had said companies could bid for four slots in most of these areas.

Source : [ The Hindu ]