In the second-generation (2G) telecom spectrum auction, Bihar was the only circle where the finally discovered price was higher than the base set before the bids. Four operators - Idea, Videocon, Vodafone and Telenor - fought for 11 blocks of 1.25 MHz spectrum.Why was Bihar so attractive? A key reason was the low base price fixed for the circle, compared to the revenue potential of this state.
A large migrant population with whom the family at home wants to keep in touch with and the general improvement in law and order there have helped make the state an attractive telecom market.
With a base price of Rs 42.51 crore (Rs 425.1 million), Bihar constituted only 1.2 per cent of the total base price for an operator getting pan-India spectrum. However, it constitutes 4.9 per cent of the country's telecom revenue, making it a lucrative market.
Its share of total telecom revenue, despite all the problems in the state, is higher than many of the country's other 21 circles, such as Punjab (3.7 per cent), West Bengal (3.2 per cent), Haryana (2.1 per cent), MP (4.6 per cent), the city of Kolkata (2.6 per cent) and even Kerala (4.3 per cent).
Also, it is a market with huge potential, as the teledensity is only 46.75, lowest in any state; the country average is 77