3G bids: Govt to get at least Rs 25,500 crore

The government would rake in at least Rs 25,500 crore (Rs 255 billion) from the auction of third generation (3G) spectrum as the pan-India licence on the ninth day reached a bid of Rs 6,354.23 crore (Rs 63.54 billion), up 81.5 per cent from the base price of Rs 3,500 crore (Rs 35 billion).

The bid price for the Delhi circle continued to rise as the highest bid reached Rs 733.71 crore (Rs 7.33 billion).

Delhi has three slots available for auction. Mumbai witnessed the second highest bid of Rs 667.77 crore (Rs 6.67 billion), followed by Tamil Nadu with the bid crossing Rs 643.37 crore (Rs 6.43 billion).

Gujarat, which saw the top bid on Day 6, today reached a bid of Rs 560.59 crore (Rs 5.60 billion). The circles of Delhi, Mumbai, Tamil Nadu and Gujarat have a base price of Rs 320 crore (Rs 3.2 billion).

Starting on April 9, a total of 52 rounds were completed till Day 9 and it is expected to be over in one-two weeks. Auction for broadband wireless access (BWA) would start two days after the closing of 3G auction.

The government has budgeted for Rs 35,000 crore (Rs 350 billion) from the auction of 3G and BWA, out of which Rs 30,000 crore (Rs 300 billion) is expected to be raked in from 3G only. There are three blocks for 3G auction in 17 circles, while four  blocks of spectrum are available in rest of the five circles.

Communications and IT Minister A Raja said the government expects revenues to go up from Rs 35,000 crore.

However, demand for 3G spectrum in Category C circles did not pick up even on the ninth day. Orissa, Assam and Jammu & Kashmir circles have not seen any bidder till now. Orissa and Assam have three slots each for 3G auction, while Jammu & Kashmir has four slots.

Six major telecom service providers -  Bharti Airtel, Vodafone Essar, Reliance Communications, Idea Cellular, Tata Teleservices and Aircel - are vying for 3G spectrum in all 22 circles.

So far, spectrum has been bundled with a unified access service licence, which comes at a price of Rs 1,650 crore (Rs 16.50 billion). Telecom PSUs Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd were given 3G spectrum ahead of private players and have already launched their 3G mobile services. They would have to finally match the price of the highest bid.