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 ]

Pranab Mukherjee

He recalled that in 2006 the set top boxes enjoyed a full exemption from basic customs duty it was to enable their free import for the smooth introduction of the Conditional Access System (CAS). And now the production capacity has come up in the country, so there will be a basic customs duty of 5 per cent on set top boxes. A move like this is bound to help the manufacturers of the country.

The Price of LCD Panels & Mobile accessories will get cheaper as he announced the reduction in basic customs duty on LCD panels from 10 % to 5 % to support indigenous production of LCD televisions and monitors.

Pranab Mukherjee said, “The electronic hardware industry has a strong potential for creating employment especially in the SME sector. I intend to reduce the basic customs duty on LCD panels from 10 per cent to five per cent to support indigenous production of LCD televisions”

Further, he proposed to reintroduce the same rate that was available to accessories, parts and components imported for the manufacture of mobile phones. So it means that the mobile accessories will get cheaper in price along with LCD Screens.