3G spectrum bid values up 90% on tenth day
22-04-2010
Bid price is likely to settle at about Rs 9,000 crore a slot
Bids for a pan-India 3G mobile spectrum licences rose 90% from the base price to Rs 6634.31 crore (Rs.66.3 billion) on April 21, after 10 days of bidding. Fifty-eight rounds of bidding were completed, according to the Department of Telecommunications (DoT) on its website.
This has encouraged the Communications Ministry to raise its estimate of returns: "The auction of 3G and Broadband Wireless Access (BWA) spectrum put together is likely to fetch Rs 44,000-45 ,000 crore for the government" says telecoms minister A Raja
At the April 21 close, the government stands to make a minimum of Rs 26,892 crore from the three slots of airwaves on offer, plus the price state-owned operators BSNL and MTNL, which already have 3G frequencies, will pay. The government has already been able to generate 77% of its target revenue of Rs 35,000 crore from the combined 3G and broadband spectrum sale. The auctions for broadband wireless spectrum are scheduled to begin two days after completion of the 3G sale process.
The government is auctioning three slots of 3G spectrum in 17 telecom service areas and four in the other five. Only two slots are up for sale across the country for BWA spectrum.
Delhi, Mumbai as well as richer States like Maharashtra, Gujarat, Andhra Pradesh, Karnataka , Tamil Nadu continue to witness maximum demand. Delhi continues to remain the most-valuable circle at a bid value of Rs 771.11 crore, followed by the Mumbai circle at Rs 708.81 crore. Tamil Nadu logged in the third highest bid price of Rs 682.92 crore, followed by Maharashtra at Rs 663.15 crore. In contrast, in almost 50% of the country, spread across 16 states, the demand for 3G airwaves has been negative.
Analysts maintain that the bid price is likely to settle at about Rs 9,000 crore a slot and Rs 45,000 crore overall, including revenues from sale of broadband spectrum, helping the government curb its record fiscal deficit that leaped to a 16-year high last year.
Input from Economic Times
Bids for a pan-India 3G mobile spectrum licences rose 90% from the base price to Rs 6634.31 crore (Rs.66.3 billion) on April 21, after 10 days of bidding. Fifty-eight rounds of bidding were completed, according to the Department of Telecommunications (DoT) on its website.
This has encouraged the Communications Ministry to raise its estimate of returns: "The auction of 3G and Broadband Wireless Access (BWA) spectrum put together is likely to fetch Rs 44,000-45 ,000 crore for the government" says telecoms minister A Raja
At the April 21 close, the government stands to make a minimum of Rs 26,892 crore from the three slots of airwaves on offer, plus the price state-owned operators BSNL and MTNL, which already have 3G frequencies, will pay. The government has already been able to generate 77% of its target revenue of Rs 35,000 crore from the combined 3G and broadband spectrum sale. The auctions for broadband wireless spectrum are scheduled to begin two days after completion of the 3G sale process.
The government is auctioning three slots of 3G spectrum in 17 telecom service areas and four in the other five. Only two slots are up for sale across the country for BWA spectrum.
Delhi, Mumbai as well as richer States like Maharashtra, Gujarat, Andhra Pradesh, Karnataka , Tamil Nadu continue to witness maximum demand. Delhi continues to remain the most-valuable circle at a bid value of Rs 771.11 crore, followed by the Mumbai circle at Rs 708.81 crore. Tamil Nadu logged in the third highest bid price of Rs 682.92 crore, followed by Maharashtra at Rs 663.15 crore. In contrast, in almost 50% of the country, spread across 16 states, the demand for 3G airwaves has been negative.
Analysts maintain that the bid price is likely to settle at about Rs 9,000 crore a slot and Rs 45,000 crore overall, including revenues from sale of broadband spectrum, helping the government curb its record fiscal deficit that leaped to a 16-year high last year.
Input from Economic Times
