According to the proposed guidelines, the bidding process for 3G spectrum will be for every telecom service area for which a reserve price will be set. The reserve price for two 5 MHz blocks of spectrum for Delhi, Mumbai and Category 'A' circles has been fixed at Rs 160 crore. The reserve price for Kolkata and Category 'B' and Category 'C' has been set at Rs 80 crore (Rs 800 million) and Rs 30 crore (Rs 300 million), respectively.

The successful bidder will be required to deposit 25 per cent of the bid amount as deposit within 24 hours of the close of the auction. The balance amount would then have to be paid within seven days. Failure to do so would mean that the earnest money would be forfeited.

The DoT has also decided that the bidder will not be allowed to withdraw a bid after placing it nor would be allowed to reduce the bid in subsequent rounds. In case the bidder decides to withdraw its bid at given time, the earnest money would be forfeited.

The top bidders, which will be determined through a controlled, simultaneous, ascending e-auction, will be allowed to choose their blocks. The successful bidder will then be allocated 3G spectrum for a period of 20 years. In case, the successful bidder does not possess a Unified Access Service Licence (UASL), he will be allotted the same, for the concerned service area.

The successful bidder will also be able to extend the date of expiry of its UASL for a determined price, in the case of expiration of the UASL before the expiry of the 3G spectrum licence. which will be determined by multiplying the number of years of the extension required by the pro-rata fees entry fee of the licence to be paid.